AT&T to Invest $1 Billion
On Monday, Dallas-based telecom company, AT&T Inc., announced plans to invest $1 billion in global network expansion. By reaching more countries, the company strives to strengthen its business services. AT&T’s upgrades will also allow customers to enjoy more large file downloads, making video content more easily accessible.
Since 2006, AT&T has invested more than $3 billion on improving its global network. The company, which serves approximately three million business customers, has formulated new strategies for 2009. As more consumers disconnect home phone-lines, both AT&T and archrival Verizon Communications will target corporations with telecom services.
Approximately one-fourth of AT&T’s revenue from 2008 resulted from wholesale and enterprise customers utilizing the global network. The revenue totaled about $32.5 billion.
Senior Vice President for Product Management, Joe Lueckenhoff, stated that AT&T has incorporated the $1 billion investment into its budget for 2009. The investment will fund new business services and geographical network expansion, instead of growing existing ventures.
"What it's not is growing volume on existing products in existing countries," stated Lueckenhoff. "It’s mixed between new capabilities and new countries."
Among the imminent projects, AT&T plans to expand its secure high-speed data networking service, based on Ethernet technology, from fifteen to thirty-one countries. The company’s expansion involves the creation of undersea fiber-optic cables that will reach Australia, Alaska, India, Asia and Puerto Rico.
In compliance with a late 2008 announcement, the company will also follow through with plans to increase on-demand computing capacity during peak periods. For example, during the holiday online-shopping season, AT&T will expand its offering for on-demand hosting companies.
Verizon will also push for expansion in 2009. Both telecom companies expect that the above-mentioned services will become increasingly popular, given the weak state of the economy.