AT&T globle service

AT&TGlobalWholesaleUpdated11/16/04SusanaSobrinoAT&TGlobalWholesaleServicesAT&TConfidentialInformationSubjecttoNon-DisclosureAgreementCopyright2004AT&T,AllRightsReservedDonotcopyordistributewithoutAT&T’swrittenpermission.2OutlineAT&TStrategicShiftfortheFuturePositionedfortheLongTermAT&TServingtheWholesaleMarketMarketSnapshot2005FocusAT&TConfidentialInformationSubjecttoNon-DisclosureAgreementCopyright2004AT&T,AllRightsReservedDonotcopyordistributewithoutAT&T’swrittenpermission.3AT&TStrategicShiftfortheFutureRealignmentofareastargetedforgrowthConcentratingonbusinessservicesmarketsNolongercompetingfortraditionalconsumerlocalorlongdistancecustomersNetworkminutesattributedtothewholesalesegmentaregrowingManyofourtopaccountsarewholesaleMaintainingaccesstotheconsumermarketviatheWholesalecustomerbaseServingVoIPcustomerscosteffectivelyviaourwholesaleproviderrelationshipsInvestingsignificantdevelopmentresourcesinsupportofWholesaleserviceoffersPositioningofWholesalewithinAT&T’sbusinessstrategyIntegrationofemergingtechnologiesDeliveringofferswhichincorporatetechnologicaladvancementsin:VPN’sIPSecurityandcontinuityservicesVoIPe-servicesAT&TConfidentialInformationSubjecttoNon-DisclosureAgreementCopyright2004AT&T,AllRightsReservedDonotcopyordistributewithoutAT&T’swrittenpermission.4AT&TBusinessServicesPresident:BillHanniganRevenue$23.0BOperatingIncome$0.8B*EBITDA$5.5B*OperatingMargin3.4%*AT&TConsumerServicesPresident:JohnPolumboRevenue$8.3BOperatingIncome$1.5B*EBITDA$1.6B*OperatingMargin17.8%*PositionedfortheLongTermAT&TTrailing12-MonthPerformanceCEO:DavidDormanRevenue$31.4BOperatingIncome$1.9B*EBITDA$6.8B*OperatingMargin6.0%*NetIncome$1.0BAT&TAT&TWholesalePresident:KathrynMorrisseyNOTE:3Q04assetimpairment,netrestructuringandotherchargesof$12.5B,andrelateddepreciationbenefits,areexcludedfromOperatingIncome,EBITDA,andnetincome.*AT&TEBITDAequalsoperatingincomeof$1.9Bplusdepreciationandamortization(D&A)of$4.9B.AT&TBusinessEBITDAequalsoperatingincomeof$0.8BplusD&Aof$4.7B;AT&TConsumerEBITDAequalsoperatingincomeof$1.5BplusD&Aof$0.1B.AT&TConfidentialInformationSubjecttoNon-DisclosureAgreementCopyright2004AT&T,AllRightsReservedDonotcopyordistributewithoutAT&T’swrittenpermission.5Capacity:76,000milesoffiberopticcableintheUSand750POPsTrafficcarried:3.8PetabytesperaveragebusinessdayPerformanceandreliability:99.999%performanceSLA’sacrossentireglobalIPportfolio34-36mslatency0.00%-0.03%packetlosseverymonthforlastyearDatacentersandco-locationfacilities:25InternetDataCentersaroundtheworldReach:AT&Tpresencein64countriesworldwideConnectionstoover400carriersin230countriesandterritoriesTechnology:Retired160legacysystemsoverthepasttwoyearsScheduledtoretire“hundredsmore”byYE2005PositionedfortheLongTermKeyDifferentiatorsUnmatchedbreadth,depthandscaleoftheAT&TnetworkAT&TConfidentialInformationSubjecttoNon-DisclosureAgreementCopyright2004AT&T,AllRightsReservedDonotcopyordistributewithoutAT&T’swrittenpermission.6Integratednetwork=~$1.8Binvestmentin2004innetworktransformationfromCircuit-SwitchedVoiceandPrivateLinetopacketizedDataandInternetProtocol,includingVoIPIntegratedsolutionsandapplications=secure,end-to-endapplicationIntegratedcontrol=hands-oncustomercontrolviarobustonlinemanagementtoolsSingle,Global,MPLS-basedIPnetworkPositionedfortheLongTermNetworkConvergenceSimplifyingComplexNetworkingEnvironmentsAT&TConfidentialInformationSubjecttoNon-DisclosureAgreementCopyright2004AT&T,AllRightsReservedDonotcopyordistributewithoutAT&T’swrittenpermission.7UniversalBillingORDERSelf-ServicingCoreNetworkPlug-n-PlayAuto-Inventory&SupplyChainFlow-ThroughProvisioningPositionedfortheLongTermConceptofOneandConceptofZeroDeliveringrealresultssince2000...Yearoveryearimprovementsincustomerexperienceandservicesperformance–backedbyindustry-leadingSLAs–coupledwithsignificantprocessandpeopleefficienciesIndustry-leadingrevenueperemployeeformsthefoundationofthehealthiestbalancesheetintheindustrySustainedinvestmentinglobalexpansionandserviceperformancerewardedbymarketshareleadershipinglobalVPNsZeroDemandMaintenanceSystemsConsolidationProcessSimplificationProductSimplificationNetworkConsolidationConceptofZeroSMAutomationZerodefectsZerocycletimeRealtimedeliveryConceptofOneSMAT&TConfidentialInformationSubjecttoNon-DisclosureAgreementCopyright2004AT&T,AllRightsReservedDonotcopyordistributewithoutAT&T’swrittenpermission.8ServingtheWholesaleMarketWhatWeDeliverAcomprehensiveserviceportfoliotogrowyourbusinessExtendingyourreachStrengtheningyournetworkinfrastructureMakingyourinternalbusinessoperationsmoreefficientComplementingyourexistingoffersetswithnewvalue-addapplicationservicesSolutionsthatareuniquetothewholesalesegmentFullymanagedorunmanagedAT&Tbrandedor‘whitelabel’PricecompetitiveReliableServiceOffersTraditionalValueAddDirectoryAssistance,AT&TWholesaleCallingCard,Conferencing,VoIPTermination,IPTF,VoIPGatewayVoIPApplicationServices,WholesaleRoaming,DSL,UVN/BCARS/Hosting,E-contact,CPEResaleVoice:LocalServiceandDomestic&InternationalLon