AT&T Plans $1 Billion Investment in 2010 in Network Capabilities, Solutions and Applications for Businesses

Investment focused on applications, mobility and cloud services

DALLAS, April 6, 2010 — AT&T* plans to invest approximately $1 billion in 2010 to scale its delivery of applications, mobility and cloud services for global companies and to continue extending its network globally, including Europe.

The 2010 investment programme for businesses is part of AT&T’s overall existing capital plan. It will provide enhanced IPv6-capable MPLS nodes in Europe; a new internet data centre (IDC) in London; increased sub-sea cable capacity across the Atlantic; a new AT&T Business Exchange node in the Netherlands to support AT&T’s Telepresence Solutions and new AT&T Telepresence Solutions rooms in Belgium (Brussels), UK (Redditch) and Slovakia (Bratislava, Kosice).

With business customers seizing the opportunities created by the continued proliferation of high speed communication networks and mobile computing devices worldwide, AT&T’s 2010 programme includes:

• Global Network Expansion – continuing to build out its global network to deliver services and applications to the markets and geographies where multinational companies today are doing business and/or housing their operations. The AT&T network now reaches countries that represent 99% of the global economy.
• Scaling Application Services – enhancing AT&T’s current portfolio of flexible collaboration services and applications such as managed hosting, cloud-based services, Telepresence, Unified Communications, Digital Media Solutions and security.
• Enterprise Mobility Applications – continuing AT&T’s focus on delivering mobile solutions, applications and integrated devices to companies of all sizes. This includes continued investment in LTE- and Wi-Fi-based applications to support the dramatic increase in demand for mobile broadband-based services.
• Vertical Industry Focus – creating and deploying applications in the finance, manufacturing, retail, healthcare, education and government sectors, expanding its presence in emerging applications including markets such as machine-to-machine communication and rolling out fixed mobile convergence and location based solutions, along with mobile platform and portal enhancements.

“AT&T’s European customers will greatly benefit from our continued investment in network-centric capabilities and business applications,” said Tom Regent, Vice President for AT&T’s operations in Europe, Middle East and Africa (EMEA). “IP-based solutions and applications are increasingly important for companies in this region who are focused on productivity gains and adapting their operations to support their businesses’ changing needs.”

Including this year’s planned investment, AT&T will have invested more than $4 billion since 2006 in business-focused network, systems and applications to provide a globally consistent set of robust and highly-secure services to the more than 3.5 million business customers it serves.

AT&T is capitalising on the ongoing shift in network traffic from voice to data and video — and more importantly to IP-based data and video — as customers migrate from legacy data networks to MPLS-based virtual private networks and managed applications.

AT&T’s planned investment in 2010 includes investment in small business services within the US, alongside the following specific areas:

• Global Network Expansion:
  • Deploy, upgrade or add diverse IPv6-capable MPLS nodes to support Layer 3 VPN and Global Managed Internet Services, including gigabit ethernet customer access across multiple locations in:
    • Europe: Belgium, France, Germany, Hungary, Netherlands, Portugal, Romania, Russia, Spain and Sweden.
    • Asia Pac: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore and Vietnam.
    • C&LA: Argentina, Brazil, Canada, Mexico, Panama and Peru.
  • Leverage AT&T’s network expansion to improve capacity and diversity, and offer services in new markets, expanding the global OPT-E-WAN service footprint from 31 countries to 37 countries.
  • Enhance application reporting and performance management.
  • Expand the footprint and capabilities of carrier class switched Ethernet Wireless Backhaul solutions.
  • Continue to enhance capabilities of managed AT&T Virtual Private Network Services on a global basis.
  • Deploy IPv6 capable MPLS core routers in Hawaii and Guam to provide an interconnection point for Transpacific cables between the US, Australia, Singapore, China and Japan to improve resiliency and performance in the Asia Pacific network.
• Additional sub sea cable capacity to ensure diversity and resilience including:
  • 180G of new capacity into the Caribbean and South America
  • Over 350G of new capacity from the US to and within Asia Pacific
  • 70G of capacity from the US to Europe
  • This capacity spans multiple subsea cables with more diverse cable landings and terrestrial routing into major cities
• Emerging Mobility Applications:
  • Extend offers and solutions in three core categories - applications, machine-to-machine (M2M) and integrated network solutions.
  • Continue to expand AT&T’s portfolio of mobile applications across multiple vertical industries, focusing on smart grid solutions and mHealth.
  • Offer enhanced solutions that take advantage of AT&T’s converged fixed and mobile networks including network-based and premise based fixed mobile convergence and super femtocell technology.
  • Increase support for the more than 750 wireless devices already connected to the AT&T network – such as e-readers, netbooks, digital photo frames, personal navigation devices, and home security monitoring and smart grid devices – for use by business customers.
• Hosting/Cloud Infrastructure Services:
  • Continue to develop and deploy cloud based managed hosting and Infrastructure as a Service capabilities.
  • Add cloud enablers to AT&T Synaptic Storage as a Service that serve as a gateway between customers storage systems and AT&T’s cloud.
  • Introduce new turnkey Synaptic Hosting (Utility Computing) products, tailored to small and medium sized businesses.
  • Add new managed hosting standardised packages, making it faster and easier to turn up AT&T Managed Hosting Services
  • Open an additional internet data center in London.
  • Completing expansions of the Ashburn, Va. and Piscataway, N.J. data centers.
• AT&T Digital Media Solutions:
  • Additional distribution with the addition of a node in Spain and increased capacity in the UK and Germany.
  • Add additional software features, such as Download Manager, to improve customer control and user experience.
  • Improve support for latest streaming technologies.
  • Broaden range of content creation and management tools and services.
• Unified Communications:
  • AT&T Telepresence Solutions
    • Install additional telepresence rooms in AT&T offices in:
      • Europe: Belgium (Brussels), UK (Redditch), and Slovakia (Bratislava, Kosice).
      • Asia Pac: Singapore (Singapore) and Malaysia (Cyberjaya)
      • India: Bangalore and Hinjewadi
      • Latin America: Brazil (Campinas)
      • Canada: Toronto
    • Install new AT&T Business Exchange nodes in Hong Kong and Netherlands to provide regional access and expanded support for Telepresence services.
  • AT&T Connect ® Global Conferencing enhancements:
    • Expansion of audio conferencing platform to Europe, providing seamless, global, cloud conferencing solutions.
    • Continued investments in enhancements and additional capacity supporting web and video conferencing solutions.
    • Add mobile applications designed to improved productivity of mobility users.

A full media kit on this announcement can be found at: www.att.com/gen/press-room?pid=17325
A video on the announcement can be found at: www.youtube.com/watch?v=8HpGiI7l0Gk

* AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

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About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation’s fastest 3G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse^SM and AT&T | DIRECTV^SM brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.

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