At&T Strategic Plan

Executive Summary AT&T’s strategic plan is to double the revenues by 2011. The main elements required for this strategy are improved customer satisfaction and improving products and services through innovations. Improve the current network to meet the increasing demand is also one of the strategies. Also, concentrating growth in the forecasted wireless and data services is a requirement for the strategy. AT&T will use its brand name, global reach, innovative power and leadership to continue to maintain competitive position. Company Background AT&T Inc.

is a premier communications holding company in the United States and worldwide. Operating globally under the AT&T brand, AT&T is recognized as the leading worldwide provider of IP-based communications services to businesses and the leading U. S. provider of wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising services. As part of its “three screen” integration strategy, AT&T is expanding video entertainment offerings to include such next-generation television services as AT&T U-verseSM TV.

The merger of AT&T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES. COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses. AT&T continues to build on the heritage of its predecessor companies that have served customers for more than a century. The new AT&T will earn customer trust and loyalty with a continuing commitment to the deployment of innovative products and services, reliable, high-quality service and excellent customer care.

Corporate History The birth of the new AT&T is, in large measure, the culmination of the evolution of communications in the United States. AT&T’s roots stretch back to 1876, with Alexander Graham Bell’s invention of the telephone and the founding of the company that became AT&T. As the parent company of the Bell System, AT&T provided what was by all accounts the best telephone service in the world. The Bell System was divested in 1984 by an agreement between the former AT&T and the U. S.

Department of Justice, in which AT&T agreed to divest itself of its local telephone operations but retain its long distance, R&D and manufacturing arms. Out of the divestiture was born SBC Communications Inc. (formerly known as Southwestern Bell Corp. ) and BellSouth Corporation. In the face of dramatic changes to the competitive landscape triggered by the Telecommunications Act of 1996, SBC Communications Inc. embarked upon a series of acquisitions to establish itself as a global communications provider: Pacific Telesis Group (1997), Southern New England Telecommunications (1998) and Ameritech Corporation (1999).

In 2005, SBC Communications Inc. acquired AT&T Corp. and created the new AT&T, poised to lead the industry in one of the most significant shifts in communications technology since the invention of the telephone nearly 130 years earlier. Key Facts about AT&T With the merger of AT&T and BellSouth, along with consolidated ownership of Cingular Wireless and YELLOWPAGES. COM, the new AT&T will have greater financial, technical, research and development as well as network and marketing resources to better serve consumers and business customers of all sizes.

The merger will accelerate the introduction of new and improved product and service sets for those customers. ?Operates one of the world’s most advanced and powerful global backbone networks, carrying more than 9. 59 petabytes of data traffic on an average business day to nearly every continent and country, with up to 99. 999 percent reliability. ?The nation’s premier wireless carrier based on subscribers, serving 61 million customers. ?The largest provider of broadband ? more than 12 million lines in service (as of 4Q06) ? and a major Wi-Fi provider, with 47,500 hot spots in 79 countries.

?Ranks as one of the world’s largest providers of IP-based communications services for businesses, with an extensive portfolio of Virtual Private Network (VPN), Voice over IP (VoIP) and other offerings, all backed by innovative security and customer support capabilities. ?Offers one of the most extensive VoIP service portfolios for businesses, enabling enterprises to migrate seamlessly between traditional and next-generation services. ?Only communications provider to deliver interoperability with the world’s five leading IP PBX vendors ? Leading U. S. provider of local and long distance voice services.

?Nation’s largest directory publisher, delivering 178 million directories a year and publishing more than 1,250 different directories in 22 states. ?Through YELLOWPAGES. COM, operates a leading Internet Yellow Pages network that received more than 1 billion local searches in 2006. ?World leader in transport and termination of wholesale traffic and recognized by numerous industry experts for its industry-leading wholesale services portfolio. ATT’s Global Headquarters is in San Antonio, Texas and currently has 302,000 employees. It is ranked at merger close among the 2005 Fortune 500, the combined company would place ninth on the U.

S. list and 18th on the full global list. AT&T Inc. common stock is listed on the New York Stock Exchange. A Fortune 500 company, AT&T is one of the 30 stocks that make up the Dow Jones Industrial Average and has a 2006 pro forma revenues of more than $117 billion. Vision Statement ATT’s vision is to be an advocate for the digital lifestyle by making broadband internet access, wireless services, voice and video work together in the consumer’s living room ? or wherever the consumer goes. The current strategy is to attract additional customers by offering integrated telecommunication services.

Mission Statement ATT mission is to be the only communications and entertainment company a customer would want” (att. com, 2006, chairletter). The current strategy to increase the number of customers (both residential and business) is a direction towards achieving this mission. Values Statement Corporate Giving AT&T believes that giving back is essential to being a good corporate citizen. Through the AT&T Foundation and the AT&T Pioneers, the company provides both financial resources and volunteer hours for initiatives that improve quality of life. Diversity and Inclusion

AT&T believes that diversity and inclusion make a better environment, both in the workplace and marketplace, benefiting the company’s business and the communities it serves. Workforce Inclusion At AT&T, diversity encompasses respect for all individuals, and workforce inclusion is a top priority for the company Supplier Diversity A&T is widely recognized for its commitment to diversity-owned businesses, setting the corporate standard for supplier diversity programs. Community Impact AT&T’s allocation of philanthropic resources to diversity outreach is making a significant community impact.

Multicultural Outreach As a global company touching diverse customers and markets, AT&T values individual perspectives and connects with customers through multicultural outreach. Environment, Health and Safety AT&T is committed to environmental stewardship and keeping the workplace safe and healthy by integrating sound EH&S practices into business decisions. Environmental Initiatives AT&T recognizes the need to responsibly use energy, fuel and other natural resources and works to lessen its impact on the global environment through several environmental initiatives.

Customer Engagement AT&T engages customers through its online billing and phone-recycling Environmental Research AT&T has led the way in research on industrial ecology, providing faculty fellowships through the AT&T Foundation. Innovations AT&T has pioneered some of the most important innovations in modern communications history, and the company continues to improve the way people live and work. Governance AT&T governance practices require honest and ethical conduct in all of its business operations. A Promise to Do What Is Right AT&T Inc.

is committed to the highest standards of ethics, integrity, personal and corporate responsibility and adherence to laws and regulations that govern our business. Through its dedication to these corporate values, AT&T has gained and retained the public’s trust and confidence for more than a century. In keeping with this commitment, AT&T has adopted a number of processes and policies that guide all of its employees and its board of directors in upholding the integrity of the AT&T name. Code of Ethics ?Encourage honest and ethical conduct, including fair dealing and the ethical handling of conflicts of interest.

?Encourage full, fair, accurate and timely disclosure. ?Encourage compliance with applicable laws and governmental rules and regulations. ?Ensure the protection of the company’s legitimate business interests, including corporate opportunities, assets and confidential information. ?Deter wrongdoing. Ethics and EEO Line The AT&T Ethics and EEO Line has been specially developed so that every employee knows that suspected violations of the Code of Business Conduct or other company rules and practices can be reported outside the chain of command. Callers to the AT&T Ethics and EEO Line are not required to identify themselves.

Code of Business Conduct AT&T’s Code of Business Conduct provides basic guidelines that help employees make responsible and ethical decisions. At least once a year, employees must sign an acknowledgement that they have read and understand the code. Violations are considered a serious matter and may result in disciplinary action, including dismissal. As outlined in the Code of Business Conduct: ?Employees are expected to comply with all applicable laws, regulations, court and commission rulings governing our business in every country in which AT&T operates.

?Employees must treat AT&T’s customers with courtesy and respect, and they must maintain and respect customers’ privacy, as required by law. ?Employees are expected to provide full and accurate disclosure of corporate data, including financial results. ?Furthermore, they must ensure that company property is used appropriately and only for the benefit of AT&T, its customers and stockholders. ?Employees are required to adhere to federal securities laws and to refrain from buying or selling AT&T stock and the stock of any other company based on information that is not yet disclosed to the public.

Guiding Principles AT&T’s Guiding Principles provide a practical and common-sense compass for how it treats its customers, suppliers, investors, communities, employees and its co-workers, and they describe what is expected of each AT&T employee. Following are the key tenets of these principles: Talk Straight; Follow Through. We earn trust by speaking clearly and honestly and by keeping promises. We adhere to the highest ethical standards in every interaction with customers, suppliers and one another. Lead by Example.

We are leaders because of what we accomplish, not because we say so. As an industry leader, we set the standard for service, convenience and reliability. As a technology leader, we challenge ourselves to develop new and better solutions. As a community leader, we seek opportunities to expand the educational and economic benefits of communications. Work Together. What we do is more than just a job; it is a calling that we pursue with passion and purpose. We deliver our best results when we work as a team, take responsibility for our actions and hold each other accountable for results.

We treat all people with dignity and respect, knowing that a diversity of perspectives is one of our greatest strengths. Deliver Our Future. We are dedicated to keeping our company strong for decades to come. We invest in the future ? in our company, in our networks and in our team. We focus on creating long-term value for our stockholders, our customers and the communities in which we work. Corporate Governance Guidelines AT&T’s board of directors is responsible for the management and direction of AT&T and for establishing broad corporate policies.

AT&T’s Corporate Governance Guidelines were developed by the company’s board of directors as a common set of expectations for how the board and its committees should perform their duties. These guidelines provide instruction on topics including the qualifications for board membership and the standards for ascertaining the directors’ independence. They also address the holding of regular executive sessions of nonmanagement directors, the structure and governance of the committees and the self-evaluation process for the board and its committees.

The guidelines are posted on the company’s Web. Environmental Analysis Internal Environment U. S. Presence AT&T is the premier U. S. provider of broadband, long distance and local voice services. The company serves millions of customers, with a concentration in 22 states: Alabama, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Wisconsin.

Through its ownership of Cingular, AT&T is able to deliver a range of wireless voice and data services to customers across the United States and globally. Cingular is the nation’s largest U. S. wireless carrier based on subscribers, with 61 million, and spectrum in 49 states. Further, the Cingular relationship expands AT&T’s ability to provide a range of innovative and flexible solutions that integrate wireless and wireline communications. Global Reach AT&T provides communications services to customers in virtually every country and territory in the world.

Remote access solutions, for example, are provided from more than 45,000 points of presence in 149 countries. Cingular delivers the widest international coverage of any U. S. -based wireless carrier, giving customers the ability to make calls using an internationally enabled phone on six continents and 190 countries, with wireless data-roaming in 120 countries for laptops, hand-held devices and other data services. Mass Market:

Consumer and Small Business Portfolio AT&T provides an unsurpassed array of wireless, voice, entertainment and Internet communications products and services for consumers and small businesses. By offering comprehensive, innovative service bundles, AT&T enables millions of consumers and small businesses to take advantage of competitive pricing and a single bill for wireline and wireless voice and data, broadband Internet and messaging services. The AT&T portfolio of services is perhaps the most robust in today’s market, featuring choice, value and convenience across a range of service options that includes: ?

High speed Internet access ?Wi-Fi connectivity at more than 47,500 hot spots in the United States and around the world, offering broadband service for on-the-go customers in more than 79 countries globally (including company-owned and third-party roaming locations) ? Home and small business networking ?Wireless services ?Satellite television services through strategic alliances ? AT&T HomezoneSM, which combines AT&T | DISH Network with AT&T Yahoo! ® High Speed Internet ? Limited availability of AT&T U-verseSM services, including AT&T U-verse TV and AT&T Yahoo!

High Speed Internet U-verse Enabled ? Local and long distance voice services ?Messaging services and call management features ?Print and online directory services, listings and advertising AT&T is a leader in making the “three-screen” strategy a reality for customers, introducing a number of integrated, multiscreen services, with more soon to be launched. Global, National, Midsize Business and Government: Enterprise Portfolio Business customers benefit from access to a single source for comprehensive local, national, global and wireless services.

AT&T provides an industry-leading portfolio of advanced IP and traditional networking solutions for both voice and data. Services are matched with an array of consulting and management services, providing businesses with professional support options for every element of network planning, design, deployment and ongoing management. Enterprise customers benefit from the industry’s most powerful online service portal, which enables a range of automated sales and service functions. The world’s leading CIOs are increasingly recognizing AT&T as their global IT (information technology) strategic partner and networking integrator of choice ?

thanks to the company’s relentless focus on delivering the industry’s most reliable service, most globally consistent portfolio, and the most advanced network management and security tools. AT&T leadership in IP services is evident in the customers it serves: All Fortune 1000 companies. All Standard & Poor’s (S&P) 500 companies Services include: ?IP and IP-VPN services ?Voice over IP ?Hosting ?Enterprise mobility solutions ?Data/managed data services ?Network integration and consulting ?Security and business continuity ?Local and long distance voice and access services ?Contact management services ?

Voice and data CPE Wholesale Offerings The AT&T wholesale organization is a global leader in transport and termination of wholesale traffic. The AT&T wholesale organization benefits carriers, wireless providers, systems integrators, cable operators, Internet service providers (ISPs) and content providers who require complete, end-to-end solutions on a global, regional and local basis. The AT&T wholesale group can help businesses grow by extending their footprint, strengthening their network infrastructure, making their internal business operations more efficient and complementing their existing offers with new value-added application services.

The AT&T wholesale organization offers a robust portfolio that recognizes the unique needs of wholesale customers such as the following: ? Wireless Operators ? The AT&T wholesale organization provides wireless operators with a full portfolio of reliable and secure network services. From supporting traditional voice applications to delivering data applications over a secure MPLS network, the AT&T wholesale team implements tailored plans for the unique requirements of wireless operators. ?Cable Operators ? The AT&T wholesale group enables cable operators to deliver voice, data and video over a reliable, secure state-of-the-art network.

The portfolio of solutions offered provides cable operators with the flexibility to scale and deliver quality applications and, as a result, helps them to create a positive customer experience and reduce churn. ?Wireline Carriers ? The AT&T network enables carriers to provide their end-user customers with one of the market’s largest portfolios of traditional and advanced voice, video and data services. Carriers can take advantage of AT&T scalable network infrastructure to seamlessly expand their networks. ?Systems Integrators ?

The AT&T wholesale organization enables systems integrators (SIs) to deliver advanced networking solutions that complement their existing offer portfolios and help transform their customers’ businesses. The portfolio of solutions offered by the AT&T wholesale organization provides SIs with the flexibility to successfully deliver new converged voice, data, and video applications over a reliable, secure, state-of-the-art network. ?ISPs ? The AT&T wholesale organization enables ISPs to deliver voice, data and video over a reliable, secure, state-of-the-art network.

The portfolio of solutions offered by AT&T provides ISPs with the flexibility to scale and successfully deliver new and exciting offers to their customers in a dynamic marketplace. ?Content Providers ? Content providers with bandwidth-intensive applications like gaming and video require infrastructure, quality of service, storage options and high levels of security. AT&T enables content providers to meet their evolving business needs through a comprehensive range of innovative services such as Managed Security Services that help protect network infrastructure and storage options that help customers maintain continuous network performance.

Networks AT&T owns and operates world-class local, national and global wireline, wireless and IP/data networks, including one of the world’s most advanced and powerful IP backbone networks, which uses Multiprotocol Label Switching (MPLS) technology to enable seamless integration of multiple networking technologies. This reliable, high-performance infrastructure helps businesses to evolve toward IP and support diverse applications while still taking advantage of their existing network infrastructure. The AT&T global backbone network includes:

?MPLS-based services available to 137 countries via 1,600+ nodes. ?More than 151,000 managed MPLS ports for customers. ?32 Internet data centers on four continents across the globe. ?More than 537,000 worldwide fiber route miles. In the summer of 2006, AT&T launched one of largest U. S. deployments of next-generation routing and optical networking technology. This upgrade immediately quadrupled the routing capacity of key portions of our IP backbone, which sits on one of the nation’s most modern and sophisticated photonicly switched long-haul fiber networks.

The company’s U. S. networks include: ?66. 5 million access lines. ?More than 12 million High Speed Internet subscribers. ?Access to more than 47,500 Wi-Fi hot spots in more than 79 countries. Cingular’s industry-leading wireless network includes: ?Superior spectrum availability in the nation’s top 100 markets. ?A fully digital, GSM/GPRS (Global System for Mobile communications/General Packet Radio Service) infrastructure across its footprint. ?EDGE (Enhanced Datarate for GSM Evolution) wireless broadband across its footprint.

?UMTS/HSDPA (Universal Mobile Telecommunications System/High Speed Downlink Packet Access) broadband, which is currently being deployed to deliver higher-speed broadband services in metro markets. Meaningful Innovation AT&T Labs has a long history of innovation, with thousands of patents issued or pending worldwide, and is a successor to a heritage that produced seven Nobel Prizes. BellSouth was the first major communications provider to commercially launch wireless broadband using pre-WiMAX technology and a leader in fiber deployment with fiber-to-the-curb facilities to more than 1. 3 million homes.

Cingular is a leader in third-generation wireless technology, launching the first widely available service in the world to use HSDPA technology. It launched the world’s first commercial deployment of wireless services using EDGE, a third-generation high speed mobile data and Internet access technology. Researchers and engineers at AT&T Labs have developed some of the world’s major technological inventions, including the transistor, the solar cell, the cell phone and the communications satellite. These groundbreaking technologies have enabled today’s computers and electronic devices, wireless phones and VoIP.

AT&T Labs has been an industry leader in the development of DSL and other broadband Internet transport and delivery systems, wireless data networks, and new technologies and applications for networking and enterprise business needs. AT&T’s predecessor companies pioneered new technologies and developed promising new products and services in a wide range of areas, including IP network management and VoIP. AT&T Labs will continue this commitment to developing and delivering meaningful innovation across market groups, from residential to small business to enterprise.

Community Support

AT&T has a proud heritage of corporate social responsibility that will continue to be an integral part of the company’s future. AT&T and its employees are committed to enriching and strengthening the communities they serve through financial support and volunteerism. The AT&T Foundation combines more than 60 years and $1. 8 billion of philanthropic commitment to communities across the country. In 2006, AT&T contributed more than $101 million through corporate, employee and AT&T Foundation giving programs. With its strong giving record, the Foundation is ranked as one of the most generous corporate foundations in the United States.

AT&T is proud to be a sponsor of the AT&T Pioneers, the world’s largest company-sponsored community volunteer organization. Nearly 350,000 AT&T employees and retirees serve their communities through the Pioneers. In 2005, AT&T Pioneers donated 11. 3 million hours to community outreach activities ? more than $204 million worth of time. Recognition AT&T is the recipient of numerous industry and national awards and recognition. Honors include: ? Company of the Year (Forbes magazine, 2006) ?World’s Most Admired Telecommunications Company (Forbes magazine, 1997 ? 2000, 2002 ? 2004, 2006) ?

America’s Most Admired Telecommunications Company (Fortune magazine, 1996 ? 1998, 2000 ? 2004, 2006) ? AT&T listed among the 25 most generous U. S. companies (Forbes, 2006) ? AT&T named to BusinessWeek InfoTech 100 (BusinessWeek, July 2006) ? AT&T listed in the leaders quadrant in all of Gartner’s most recent regional Network Service Provider Magic Quadrants spanning Global, Asia Pacific and the U. S. markets. (Gartner, 2006)? ?”AT&T offers the strongest North American MPLS service lineup. ” (Forrester Research, “AT&T Leads in North American MPLS Services,” Feb. 2006) ? AT&T rated best-in-class Web hosting provider.

(IDC, 2006) ? AT&T BusinessDirect® identified as a leader in enterprise self-service in 2005. (Yankee Group, “Business ePortals Continue to Evolve to Continue to Meet Enterprise Customer Needs,” April 2006) ? AT&T recognized in survey as an undisputed market leader, leading service providers selected, among current Ethernet users. (Yankee Group, 2006 WAN Ethernet Survey) ? AT&T named “Best National U. S. Wholesale Provider. ” (Capacity magazine, Dec. 2006) External Environment Economic Factors With the recent economic recovery in US, countries all over the world are experiencing relative economic growth.

This has increased the customer spending on telecommunication services both by the consumers and the businesses. AT&T can take advantage of this rise in customer demand to increase its revenues. Social Factors With the current computer generation aging, we will see an increase in the use of telecommunication services due to the recommendations by this generation both in the residential and business areas. Also, there is an increase in both US and world population, this will result in increase in demand for the telecommunication services. AT&T can target this generation to increase its customer base resulting in an increase in revenues.

Political Factors Political Factors will play a major role in the industry as the companies try to expand globally by mergers and acquisitions. The companies will have be abide by the local laws if they want to operate it in a particular region. AT&T is well-positioned to abide by the local laws because of its global presence. Any new markets do not pose a significant challenge in this area for AT&T. Technological Factors As the number of telecommunication providers increase, it becomes necessary to distinguish products through technological advances.

One such product AT&T is using is the AT&T U-verse. AT&T U-verseSM represents the future of communications and entertainment. The industry-leading Internet Protocol (IP)-based services distributed over AT&T’s fiber-rich network will bring a new level of service integration and features to customers across the AT&T footprint. With AT&T U-verse, it’s all coming together. The AT&T U-verse portfolio integrates digital video, AT&T Yahoo! High Speed Internet U-verse Enabled, and in the future, voice over IP services. AT&T U-verse TV ? AT&T’s premier, 100 percent IP video offering ?

features leading content, quality high-definition programming, and enhanced capabilities unlike anything on the market. Another growth market, which holds the promise for continued expansion well beyond 2006, has been wireline broadband, which for AT&T includes both DSL and FiOS services. The more-mature DSL service, which is based on copper wire connections to customers’ homes, has recently gained market share from cable modems as the number of U. S. residential broadband subscribers continues to grow rapidly. The broadband market now has more new subscribers for DSL service than for cable modems, and that trend is continuing.

Some advantages of DSL include lower cost, no equipment fees or networking charges, no bandwidth limits, a dedicated Internet connection and value-added services. Newer FiOS broadband service, which is based on fiber-optic connections to customers’ homes, is growing at an even more rapid pace. AT&T expects to reach nearly 19 million households as part of its initial deployment by the end of 2008. AT&T is adding about 40,000 miles of fiber to its already fiber-rich network, bringing fiber even closer to customers’ homes using fiber-to-the-node (FTTN) and fiber-to-the-premises (FTTP) technologies.

Industry While the telecommunications industry is more than 100 years old, the industry today finds itself at the beginning of a new communications revolution. Technology is radically transforming the industry. In the United States: ?More than 40 percent of long-distance telephone use and more than a third of local telephone use has been supplanted by new technologies. ?By 2004 the number of long-distance calls made over wireless networks exceeded those made over wireline networks. Wireless minutes of use exceeded 1 trillion in 2004. ?More than 180 million Americans have wireless phones ?

approximately one in five of whom use their mobile phones as their main communication device. ?More than 70 percent of American households are connected to the internet, and by 2010 an estimated 62 percent will use broadband access. ?80 percent of American adults under age 50 use the internet. ?Instant messages, which already outnumber e-mails, are not only becoming the principle means of communication for young people, but have evolved beyond text to voice and video. ?Nationwide wireless networks and internet-based communications have changed traditional d