Press Release

AT&T and Avaya Announce Global Strategic Alliance to Accelerate Business VoIP Migration

Bedminster, New Jersey, Basking Ridge, New Jersey, January 24, 2006 - AT&T Inc. (NYSE: T) and Avaya Inc., a leading global provider of business communications applications, systems and services, today announced a global strategic alliance to help businesses and government agencies manage through one of the most significant technology evolutions they face — the migration to voice over IP/IP telephony.

The alliance leverages AT&T's industry-leading global IP network, network design and management expertise with Avaya's enterprise IP communications technology to deliver end-to-end managed solutions from the wide area network to the IP phone on the desktop. The solutions provide comprehensive migration to IP telephony and the associated local area network (LAN) and wireless LAN infrastructure.

By giving customers a single point of contact for virtually every aspect of this migration, including design, implementation, operation, ongoing management and maintenance, the alliance is intended to accelerate global VoIP and IP telephony deployments and simplify the integration with traditional circuit-switched enterprise voice networks.

Through the alliance, customers will benefit from:

  • A single source for the seamless integration of IP-based voice and data networks worldwide
  • Reduced total cost of ownership
  • Flexibility and control to deploy IP telephony when and where it makes sense
  • Around-the-clock proactive network-monitoring and fault isolation and resolution via AT&T's integrated Global Enterprise Management System
  • Direct access through the AT&T Global Client Support Center to Avaya expertise and tools for integrated service delivery across the customer's network
  • Visibility and management control over their enterprise VoIP network and IP telephony infrastructure through the award-winning AT&T BusinessDirect® Web portal.

"VoIP has shifted from an emerging technology to a critical business solution," according to Paris Burstyn, Director at Yankee Group. "We estimate the business VoIP market will grow at a CAGR of 31.4 percent to reach almost $3.3 billion in 2010. VoIP and IP telephony solutions appeal to businesses as they provide an excellent converged platform for voice and data, and improve the manageability of communications. In working with AT&T, customers can leverage the reliability and scalability of its global IP-MPLS network in support of their solution."

Numerous companies, like Fireman's Fund Insurance Company, a nationwide property and casualty insurer based in Novato, Calif., have already leveraged the AT&T-Avaya alliance to lay the groundwork for their IP telephony infrastructure. "The solution developed by AT&T and Avaya enables Fireman's Fund® to deliver any service, any where. With their assistance, we have designed a virtual environment for our telephony and networking platform across our business. It gives us a huge competitive advantage with additional capabilities and capacity," said James Dunn, chief technology officer, Fireman's Fund.

During the last few years, both companies have worked closely on designing and delivering IP telephony solutions. In 2003, AT&T announced interoperability of Avaya's IP telephony servers, gateways and MultiVantageTM software with AT&T's global IP network and VoIP services. Avaya Session Initiation Protocol (SIP)-enabled servers are in the process of completing interoperability testing as well.

"Interoperability is one of the biggest challenges facing businesses and government agencies today, as they plan their migration to VoIP and IP telephony. This alliance addresses that challenge, ensuring that regardless of where enterprises are in this migration, their traditional voice networks will interoperate with their IP-based voice network and equipment," said Eric Shepcaro, AT&T vice president of business strategy and development. "Our expertise and experience in network design, implementation, operation and life-cycle management — coupled with Avaya's leading IP telephony technology — will deliver the improved performance and security that customers expect from their converged voice and data networks."

This alliance formalizes the joint work both companies have been doing and expands the relationship globally, providing a consistent customer experience regardless of location. As a result, AT&T has integrated a full suite of Avaya IP telephony products, including Avaya Communication Manager, with the AT&T IP Telephony and LAN Service. With this end-to-end solution, AT&T is able to manage a customer's entire IP telephony infrastructure, such as IP PBXs, media servers, voice gateways, voicemail systems, IP phones and IP soft phones.

"Working with industry leaders, such as AT&T, is a key component of Avaya's solution delivery model for businesses of all sizes," said Peter Leuzzi, Avaya vice president, Strategic Alliances and Partnerships. "Integrating the strengths of Avaya's business communications solutions and service capabilities with AT&T's global network reach and depth of service offerings creates streamlined solution options for companies that are planning to migrate to IP telephony."

Under the alliance, Avaya IP telephony products, including the Avaya IP Office converged solution for small and medium businesses, also have been integrated into the global AT&T Solution Center Lab Network, which helps businesses quickly assess, plan, design and implement new network solutions. The lab network enables customers to "test drive" new applications, services and network designs to ensure optimal performance.

AT&T IP Telephony and LAN service is part of the company's comprehensive suite of business VoIP services. Last year, AT&T introduced the Dynamic Network ApplicationsSM suite of IP communications services. AT&T Voice DNASM, an award-winning network-based VoIP service, is the first of these services available in the market. More information on AT&T VoIP and IP telephony services is available at www.business.att.com.

About Avaya
Avaya Inc. designs, builds and manages communications networks for more than one million businesses worldwide, including over 90 percent of the FORTUNE 500®. Focused on businesses large to small, Avaya is a world leader in secure and reliable Internet Protocol telephony systems and communications software applications and services.

Driving the convergence of voice and data communications with business applications - and distinguished by comprehensive worldwide services - Avaya helps customers leverage existing and new networks to achieve superior business results. For more information visit the Avaya Web site: http://www.avaya.com.

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. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

© 2006 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.

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