AT&T to Invest Over $17 Billion During 2009

AT&T has announced that it plans to spend between $17 billion to $18 billion in 2009 on improving its networks. This is in like with its 2007 capital expenditures of $17.7 billion and expected to exceed the planned investment of any other U.S. telecom company.

Approximately two-thirds of AT&T's 2009 investment will extend and enhance the company's wireless and wired broadband networks to provide more coverage, speed and capacity. To support increased customer demand in mobility, broadband and video, the company plans to add nearly 3,000 jobs in 2009. However, as previously announced, the company expects to reduce jobs in other areas - primarily wireline - due to economic pressures, a more streamlined organizational structure and continued shift among residential customers from wired voice services to wireless and broadband.

"Demand for broadband continues to grow as new applications emerge and customers embrace them, leading to data traffic on our network growing more than 50 percent year over year on average," said Randall Stephenson, AT&T chairman and chief executive officer. "We expect demand will only escalate when the larger economy rebounds, and AT&T's continued strong network investment will help ensure that we're fully ready to support the next wave of economic growth. We recognize the continuing importance of investing in critical network infrastructure, which plays a key role in driving commerce, innovation and job growth."

With 3G services now available in nearly 350 U.S. metropolitan areas, the company will focus in 2009 on enhancing coverage and reliability across this footprint, including the planned addition of more than 2,100 new cell sites across the country. Additionally, AT&T will expand 3G service to 20 new markets this year.

Highlights of other planned initiatives include:

• Expanding 3G service while nearly doubling the total network capacity in most markets via additional spectrum at 850 MHz, a frequency that can offer improvements to in-building coverage.
• Leveraging the capabilities of AT&T's GSM/HSPA network to further increase the nation's fastest 3G speeds, starting with trials of 7.2 Mbps peak downlink speeds and evolving to speeds as high as 20 Mbps.
• Customer trials leading toward general availability of AT&T 3G MicroCell offerings, which utilize femtocells and home broadband connections to enhance in-building wireless coverage.
• Continuing expansion of AT&T's leading Wi-Fi footprint and infrastructure, building from the 20,000 hotspot footprint created in 2008 with the acquisition of Wayport.

These wireless initiatives are complemented by the continued expansion of AT&T's wired broadband access and IP/MPLS backbone networks. The company continues to build its AT&T U-verse footprint, with current plans calling for the network to pass 30 million living units in 2011, up from 17 million today.

AT&T will also continue to invest in its unsurpassed global IP backbone network, which carries wireless and wired broadband traffic from AT&T customers and others around the globe. In 2008, the company completed the world's largest deployment of 40 Gigabit backbone technology. This year, the company will invest in multiple new subsea fiber-optic cables to maximize capacity and reliability of backbone connections, and will continue to expand the global reach of access solutions for enterprise customers.

Posted to the site on 10th March 2009