‘Pure IP’ Backbone, 3G Network Will Give AT&T Edge, Executive Says
AT&T’s “pure IP” backbone upgrade will be a “great platform for integrated, converged services,” Group Pres.- Operations Support John Stankey said Mon. at the Bear Stearns Conference in N.Y.C. And the wireless network is due for an upgrade, he said, predicting 3G coverage in “nearly all 100 top markets” by year-end.
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The backbone upgrade will provide a single IP network for voice, high-speed Internet and video. The single network will be more efficient to maintain, more flexible and will offer improved service, Stankey said. It’s a “terrific platform for future content and ad opportunities,” he said. AT&T’s large-scale OC-768 network deployment will carry traffic at 40 Mbps, 4 times faster than today’s OC-192 technology, he said. AT&T also will install managed network technologies to increase throughput, he said.
AT&T’s U-verse IP-TV service has found its greatest success with dissatisfied cable users and with current AT&T broadband customers, Stankey said. AT&T hopes to accelerate home installations of its U-verse IP-TV service, he said. U- verse, available in 21 markets, will continue to expand, he said: 70% of AT&T access lines are approved for competitive video entry. Installations are running about 600 a day, and AT&T hopes to triple that number this year, he said. To do that, AT&T will beef up its marketing and speed installations, he said. Besides an existing direct mail program, AT&T will encourage AT&T wireless retail representatives to sell video and other company products at major-market stores. Installations take 6-8 hours, depending on the installer’s experience, he said; AT&T hopes to get that down to 4.
Recent AT&T mergers will lead to a $6 billion annual run rate by 2009, Stankey said. Integrations will save over $3 billion this year, he added. The Apple iPhone, which AT&T will launch this month, offers a “great opportunity to take share,” Stankey said.