Wednesday, December 10, 2008

ATT's 2020 Strategies

AT&T gave a presentation this week where it made some interesting comments about how it plans to address important issues for getting ready for 2020.

The company talked about how network usage will change. It expects that 70 percent of its voice minutes will come from mobile services by 2013 and that data usage will grow by 50 percent per year between now and 2013. Its charts indicate that at least half of its voice traffic came from mobile services in 2007. It expects that voice will account for less than 5 percent of the traffic on its networks by 2013. Its charts indicate that it expects video to account for significantly more traffic than data. Over all its expects its backbone traffic to grow 50 percent annually and access traffic to grow 30 percent annually.

The company also discussed its consolidation into what it calls "one company". It expects to end up with one business services organization, one consumer services organization, and one network and services organization. It is doing this to increase its efficiency and to deliver new integrated/converged services. It stated that its U-verse IPTV service is the template for what it plans to achieve.

ATT plans to focus several areas for new services - femto cells, VoIP, VPNs, along with hosting and CDN services.

ATT is moving along the directions that we forecast in our report Telecom 2020: Transformation Strategies. Mobile is becoming the primary delivery vehicle for many services. This presentation confirms our predictions of the major effects that will occur in the organization of carriers.

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