At&T Strategic Plan

Executive Summary

AT&T's strategic plan is to double the revenues by 2011. The main elements required for this strategy are improved customer satisfaction and improving products and services through innovations. Improve the current network to meet the increasing demand is also one of the strategies. Also, concentrating growth in the forecasted wireless and data services is a requirement for the strategy.

AT&T will use its brand name, global reach, innovative power and leadership to continue to maintain competitive position.

Company Background

AT&T Inc. is a premier communications holding company in the United States and worldwide. Operating globally under the AT&T brand, AT&T is recognized as the leading worldwide provider of IP-based communications services to businesses and the leading U.S. provider of wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising services. As part of its "three screen" integration strategy, AT&T is expanding video entertainment offerings to include such next-generation television services as AT&T U-verseSM TV.

The merger of AT&T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses.

AT&T continues to build on the heritage of its predecessor companies that have served customers for more than a century. The new AT&T will earn customer trust and loyalty with a continuing commitment to the deployment of innovative products and services, reliable, high-quality service and excellent customer care.

Corporate History

The birth of the new AT&T is, in large measure, the culmination of the evolution of communications in the United States. AT&T's roots stretch back to 1876, with Alexander Graham Bell's invention of the telephone and the founding of the company that became AT&T. As the parent company of the Bell System, AT&T provided what was by all accounts the best telephone service in the world.

The Bell System was divested in 1984 by an agreement between the former AT&T and the U.S. Department of Justice, in which AT&T agreed to divest itself of its local telephone operations but retain its long distance, R&D and manufacturing arms. Out of the divestiture was born SBC Communications Inc. (formerly known as Southwestern Bell Corp.) and BellSouth Corporation.

In the face of dramatic changes to the competitive landscape triggered by the Telecommunications Act of 1996, SBC Communications Inc. embarked upon a series of acquisitions to establish itself as a global communications provider: Pacific Telesis Group (1997), Southern New England Telecommunications (1998) and Ameritech Corporation (1999).

In 2005, SBC Communications Inc. acquired AT&T Corp. and created the new AT&T, poised to lead the industry in one of the most significant shifts in communications technology since the invention of the telephone nearly 130 years earlier.

Key Facts about AT&T

With the merger of AT&T and BellSouth, along with consolidated ownership of Cingular Wireless and YELLOWPAGES.COM, the new AT&T will have greater financial, technical, research and development as well as network and marketing resources to better serve consumers and business customers of all sizes. The merger will accelerate the introduction of new and improved product and service sets for those customers.

* Operates one of the world's most advanced and powerful global backbone networks, carrying more than 9.59 petabytes of data traffic on an average business day to nearly every continent and country, with up to 99.999 percent reliability.

* The nation's premier wireless carrier based on subscribers, serving 61 million customers.

* The largest provider of broadband -- more than 12 million lines in service (as of 4Q06) -- and a major Wi-Fi provider, with 47,500 hot spots in 79 countries.

* Ranks as one of the world's largest providers of IP-based communications services for businesses, with an extensive portfolio of Virtual Private Network (VPN), Voice over IP (VoIP) and other offerings, all backed by innovative security and customer support capabilities.

* Offers one of the most extensive VoIP service portfolios for businesses, enabling enterprises to migrate seamlessly between traditional and next-generation services.

* Only communications provider to deliver interoperability with the world's five leading IP PBX vendors

* Leading U.S. provider of local and long distance voice services.

* Nation's largest directory publisher, delivering 178 million directories a year and publishing more than 1,250 different directories in 22 states.

* Through YELLOWPAGES.COM, operates a leading Internet Yellow Pages network that received more than 1 billion local searches in 2006.

* World leader in transport and termination of wholesale traffic and recognized by numerous industry experts for its industry-leading wholesale services portfolio.

ATT's Global Headquarters is in San Antonio, Texas and currently has 302,000 employees. It is ranked at merger close among the 2005 Fortune 500, the combined company would place ninth on the U.S. list and 18th on the full global list. AT&T Inc. common stock is listed on the New York Stock Exchange. A Fortune 500 company, AT&T is one of the 30 stocks that make up the Dow Jones Industrial Average and has a 2006 pro forma revenues of more than $117 billion.

Vision Statement

ATT's vision is to be an advocate for the digital lifestyle by making broadband internet access, wireless services, voice and video work together in the consumer's living room - or wherever the consumer goes. The current strategy is to attract additional customers by offering integrated telecommunication services.

Mission Statement

ATT mission is to be the only communications and entertainment company a customer would want" (att.com, 2006, chairletter). The current strategy to increase the number of customers (both residential and business) is a direction towards achieving this mission.

Values Statement

Corporate Giving

AT&T believes that giving back is essential to being a