UBS Media Week: AT&T Will Marry Wired And Wireless Together; Femtocells Coming


John Stankey, the CEO of AT&T (NYSE: T) Operations, said with the way the world is evolving today, he does not envy companies that are in the voice business unless it includes a wireless component. But because AT&T has both a wired and wireless infrastructure, it has the opportunity to provide products that leverage both, Stankey said while making a formal presentation at UBS’s Media and Communications Conference yesterday.

Event | Presentation.

Some highlights from his remarks:

On wireless voice and data usage: He said by 2013, more than 70 percent of voice minutes used on AT&T’s wired and wireless networks will be on the wireless network and that wireless data usage will increase by more than 50 percent per year. AT&T expects to expand its 3G wireless footprint to about 350 cities by year end, and said wireless data revenues are up 50.5 percent from $1.8 billion in third quarter 2007 to third quarter 2008.

U-Verse update: On the fixed line network, video is a major driver of bandwidth usage. Over the past five years, AT&T’s video traffic on its broadband network has increased 500 percent. The video interest led to their investments in U-Verse, which Stankey said they’ll reach their goal of hitting 1 million households by next week, which they expected to do by the end of the year.

AT&T’s Wi-Fi strategy: Stankey said AT&T just got approval to close transaction with Wayport yesterday morning, which will give AT&T access to 20,000 hotspots. He said Wi-Fi is a critical technology to have in the company’s mix. Many customers who have 3G data cards today use them on the same cell tower 80 percent of the time. He said it’s not efficient to provide data to people in that manner, when Wi-Fi could easily be an option, like at a hotel, or coffee shop, where AT&T also could have a Wi-Fi hotspot.

Femtocell Trials: Stankey said they are currently testing femtocells, which enhance coverage indoors by using a consumers own broadband connection for backhaul. The company expects to do a broader metropolitan scale deployment in the second quarter next year. “We are really excited about this,” he said. “It

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