AT&T (Quote) is accelerating its embrace of convergence with a
new $750 million investment in its global Internet infrastructure.
The move represents an even bolder step by the telecommunications
provider to offer a bundle of networking services that are IP-based,
as well as leverage its Cingular Wireless assets.
AT&T said the plan includes more than 200 initiatives expanding and
enhancing the company’s global business VPN, voice and security
services offered multinational customers.
“This is an investment in their enterprise business, it’s certainly
not a huge surprise,” Stifel Nicolaus analyst Chris King told
A key goal of the investment is extending AT&T’s global IP reach and
offering more connectivity options. The telecom giant said it plans
to focus on high-growth markets, including Asia Pacific (including
China and India), the Middle East and Latin America. More developed
markets in France, Germany, the U.K. and Canada will also be touched
by the network expansion.
AT&T also said by the end of 2007 it will increase to 38 Internet
Data Centers (IDC) deployed worldwide. Capacity of existing sites in
California, Virginia and the UK will be expanded while opening new
centers in the New Jersey/New York area and Canada.
Those centers, including four from USinternetworking and BellSouth,
will deliver new managed hosted services, using application software
management of recently acquired USi.
Additionally, the telecom giant will also extend deployment of Wi-Fi,
DSL, Ethernet and satellite to help companies connect to the global
Slated by year’s end: satellite and long line extension access from
51 countries, DSL access in 34 countries and Ethernet access in 31,
according to a statement.
By the end of 2007, more than 155 countries — including Vietnam,
Pakistan, Saudi Arabia, Malaysia, Morocco and India — will gain
Multiprotocol Label Switches (MPLS)-based access to AT&T’s global IP
The MPLS-based integrated IP network lets AT&T provide a variety of
global services over a single converged infrastructure.