IHS Global Insight Perspective | |
Significance | AT&T will spend US$1 billion enhancing the global business networks and services during 2009, in line with the last two years. |
Implications | AT&T will continue to expand the network, both with physical capacity enhancements and by enabling services. |
Outlook | AT&T and Verizon dominate the domestic market and are continually enhancing their global presence through long-haul networks and their business service offerings. The reduction in global trade over 2008-09 may affect this, but new services are designed to generate business efficiencies that should prove attractive. |
AT&T has announced some detail on its planned expansion of the global network with investments of US$1 billion in 2009 driving new services and network-based applications, promising "anytime, anywhere" access to systems, suppliers, customers, and employees. Mirroring recent announcements from Verizon, investment will target supporting networks based on demand applications with managed hosting, content delivery/management, and telepresence services (see United States: 12 January 2009: Verizon Gets Competitive on Content Delivery and United States: 19 February 2009:Verizon Business to Build Up Flexible Hosted Services and Consulting).
Global Network Expansion
AT&T has a global network of 888,000 route miles of fibre including ownership interests in 488,000 route miles of subsea cabling in 83 separate systems. New subsea cable capacity will be deployed to Australia, Asia-Pacific, India, Puerto Rico, the Caribbean, and the U.S. state of Alaska and on trans-Atlantic routes to Europe. VPN services will be extended to 18 new countries to total 149, including VPN over Ethernet in 38 countries, up by 4 on current availability, and VPN over DSL in 44 countries from the current 38. Availability of virtual private LAN access will more than double from 15 countries to 31.
Global backbone capacity will be enhanced with faster 10 Gbps edge equipment, enhanced backbone bandwidth, and additional Cisco CRS1 routers added to key routes. The network will be capable of "wavelength private line" services—a long-haul monitored and managed service supporting gigabit (Gb) Ethernet and 10 Gb Ethernet LAN and WAN services. Network monitoring and management tool sets with support will be available through AT&T Business Direct. Network and premises-based security services including firewall, Internet Protect and intranet protection, and DDoS (distributed denial of service) services will be made available in the Asia-Pacific region.
Next-generation IPv6 protocol support, built to ensure backwards compatibility with IPv4, will be deployed. IPv6 mainly enhances available address space, facilitating simplified network management and routing, and also integrates network security.
Global Network Services and Hosted Applications
AT&T will continue building out the global network into new markets where multinationals are particularly active and will tap an expanded agreement with IBM, integrating IBM's global network operations. Telepresence services will be made available in China through agreements with local providers. Managed IP telephony and LAN services will be made available in China, India, the Philippines, Thailand, Malaysia, and Mexico. Hosting and utility (on demand, networked) computing will be enhanced with additional capacity at data centres in the U.S. cities of Atlanta, Annapolis, and the New York/New Jersey area; Hong Kong; Tokyo; and the United Kingdom. The Synaptic Hosting platform has already been enhanced with new "Super IDCs" (internet data centres) in Singapore, Amsterdam (Netherlands), and the United States featuring increased automation and support for managed applications including Oracle and SAP (see Asia-Pacific: 20 November 2008: AT&T Announces First Super Internet Data Centre in Asia). The Content Distribution Service will extend its reach into Mexico and enhance services in high-growth areas including Brazil, India, and China, with additional capacity in existing regions, with Europe, Japan, Hong Kong, China, and Taiwan noted.
IBM Network Integration Agreement
AT&T and IBM forged an expanded agreement to work together on delivering networking, computing technology, and services to multinationals, taking support and network expertise to 48 countries around the world.
Mobility Services
AT&T notes that it has voice roaming agreements in 210 countries, data roaming in 160 countries, and 3G services in 65 countries, together with a growing global Wi-Fi network of 88,000 hotspots. AT&T will also facilitate global management of contracts with multiple operators for multinational companies. Mobile services will be enhanced with solutions designed for specific industries that will leverage available location-based information services, an enterprise application platform to build enterprise specific applications (in conjunction with Antenna Software), and support for self-managed specialised data devices—mainly machine-to-machine deployments, e.g. telemetry devices. Devices will be able to be remotely protected, controlled, and secure.
Outlook and Implications
AT&T notes that it has invested more than US$3 billion since 2006 (including this US$1 billion) on business-focused network, systems, and applications around the world, so this is no significant change to spending but outlines some of the objectives of AT&T in the global arena. Network capacity is continuing to be enhanced, with advanced IP technologies and services available over a wider area. Increasing availability will improve penetration of emerging markets, particularly meeting the requirements of globalised businesses. Increasing functionality is moved onto the network through hosting of applications and services and enhancing capabilities, including security and intelligent content management, within the network itself. The deal with IBM leverages into IT system design and enhances AT&T's consulting opportunities. Unsurprisingly, the direction of many of these announcements mirrors Verizon Business's enhancements such as Verizon's global procurement programme, networked security features, and enhancements to hosted application support as the two behemoths leverage their brand value, expertise, global reach, and customer contacts to sell in new services (see United States: 19 February 2009: Verizon Business to Build Up Flexible Hosted Services and Consulting). The reduction in global trade over 2008–09 may have an effect, but new services are designed to generate business efficiencies that should prove attractive.