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AT&T Announces VoIP Service For Business Customers

[September 23, 2003]

AT&T Announces VoIP Service For Business Customers

AT&T today announced a new Voice-over-IP (VoIP) service for business customers, adding to a growing portfolio of offers for companies that are embracing the technology to take advantage of new applications that improve business results and productivity. In 2004, AT&T will offer VoIP as an option on its managed network Virtual Private Network (VPN) service for business customers.

Initially the service will target the domestic voice needs of United States-based multinational companies and U.S. government agencies with continued expansion to over 40 countries throughout 2004.

AT&T is providing the service via its Multi-Protocol Label Switching (MPLS)-based network, which uses class of service traffic management to provide enterprises with applications such as voice - delivered securely, reliably and with high quality. The new service features:

o The industry's first global VoIP-specific and ITU standards-based service level guarantee for voice quality. To monitor call quality, customers will receive reports that provide the scored quality of each and every call placed. These reports are accessed via AT&T's BusinessDirect portal.
o Dynamic real-time bandwidth allocation and prioritization between voice and data, allowing customers to optimize their network costs and utilization
o On-net calling nationwide and to more than 40 countries worldwide, with hop-off to many more.
o Unified billing for customers' voice and data services

AT&T said it understands that customers require connectivity to AT&T's VoIP service from a variety of endpoints and transport methods. Voice over AT&T's managed network VPN Service is another example of how AT&T is meeting those needs. This new service complements the IP PBX connectivity previously announced by AT&T earlier this year.

Customer demand and technology advancements have guided our actions to drive to a single global IP network, said Peggy Sexton, director of IP Network Services product management and development. Consistent with our strategy, we're now using our expertise to deliver services on this powerful network. We're taking advantage of our advanced MPLS network capabilities and creating new, valuable applications -- such as high-quality voice -- for businesses any way and any time they want them. Businesses are the barometer for how new technologies will be adopted by the marketplace, she added.

We're delivering these VoIP solutions today because businesses are demanding them. At the same time, we're continuing to explore the market potential of VoIP for consumers. The adoption of IP telephony grew by about 10 percent in 2002, said Zeus Kerravala, Yankee Group vice president. Businesses are requiring end-to-end VoIP solutions and management support to accelerate the implementation and benefits of VoIP or IP telephony.

AT&T is in an excellent position to step up to delivering services that address these challenges, he added. The convergence of old and new technologies doesn't happen by flipping a switch, said Sexton. New networking technology and architectures must give customers the ability to take advantage of new applications without stranding their existing investments in their own networks and systems.

Further, given that all businesses are grappling with network convergence, AT&T is applying its networking expertise to help companies evolve their own network migration and convergence path to the future - on their terms and at their own pace, she said.
Over each of the past three years, AT&T has invested billions of dollars to ensure its network, support systems and customer experience are second to none. As the industry leader in IP, AT&T now carries on a typical day more IP traffic than voice traffic.

We're now leveraging our size, ability to scale and our network integration expertise to deliver to customers the next generation of IP services and applications, said Sexton. Today's announcement represents yet more evidence of our commitment to translate VoIP technology into real and relevant solutions for global companies and enterprises.

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