New Connections for a Digital Life Tammi Terrell Vice President-General Manager San Diego, Las Vegas, Hawaii – AT&T CWAG July 11, 2011 Where did we come from? 2 Hyper-Competition + Technology = Innovation and Value A new concept for Mobility in communications Communications extend to the car The cell phone becomes personal National plans (no roaming), free nights and weekends, rollover minutes • Explosion in texting, email, and MMS • Smartphones - vertically integrated with apps • • • • 3 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. The Industry is Changing Dramatically… 4 The Rapid Changing Face of Wireless Wireless Industry Penetration 1995 2000 2005 2010 Source: CTIA/Gartner 5 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 2013 Petabytes/month 10 5 0 6 2007 2008 2009 2010 150 125 Petabytes/month 100 75 50 25 AT&T projections 0 7 2007 2008 2009 2010 2011 2012 2013 2014 2015 The U.S. leads the World in Mobile Broadband, AT&T leads the U.S. Mobile BB Subs Smartphone Sales Application Downloads Source Parks Associates, June 2011 Source: Strategy Analytics, Global Smartphone Sales Forecast by Country, Jan 2011 Strategy Analytics, Feb 2011 The U.S. leads the world in mobile broadband subscribers The U.S. leads the world in smartphone sales The U.S. leads the world in application downloads And AT&T leads the U.S. And AT&T leads the U.S. And AT&T leads the U.S. 2010E (millions) 8 2011E (millions of units) © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 2010 (in millions) So, what is the next big thing? 9 Connected Devices = The Next Big Thing… eReaders Picture Frames PNDs Tablets Computing The AT&T Networks Tracking Devices Wireless + Broadband Wi-Fi + International In-Car, Telematics Gaming Devices Digital Cameras/ Camcorders Healthcare 10 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Connected Home Our vision is that by 2020, we will have 50 billion connected devices Rapid Growth of Connected Devices - Ericsson CEO, Mar 2010 Worldwide Sales of Portable CEs 126 M with Embedded WWAN (millions, 2011-2015) There will be 1 trillion devices connected to the Internet by 2013 - Cisco CTO, Mar 2010 20 Billion connected devices by 2020 -telecomseurope.net, Feb 2010 Shipments of connected CE devices are forecasted to grow at a rate of 65.2% (CAGR) to reach 271 million in 2015. 16 M 16 M - 1.9 M 1.9 M 2008 2009 2010 2011 2012 2013 2014 2015 Other MIDs Portable Game Consoles Netbooks Media Tablets DPFs PNDs PMPs e-Book Readers Machine-to-Machine traffic to increase 40-fold between 2010 and 2015 -- Cisco VNI Mobile Forecast, Feb 2011 © Parks Associates, 2011 11 - Berg Insights, Feb 2011 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. What trends do we see coming in this space? 12 Trends in Emerging Devices Integration Empowered by the Smart Device… eReaders • Purchase content anywhere • Share content across devices • Optimize reading experience Picture Frames • Share memories as they happen • Manage control remotely Healthcare • Dosage reminders – text or voice Tracking Devices • Track what’s important • Monitor vital stats • Family alerts to ensure adherence • Track adherence over time • Use geofence parameters 13 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Trends in Emerging Devices Extending connectivity to the car… Tethered Solutions • Leverage content & apps from smartphone • Streaming audio & video • Access to web, cloud for entertainment Embedded Solutions • Engine, system diagnostics • Auto crash notification • Stolen vehicle assistance • Navigation, local search • Emergency voice calls • Remote Unlock, Remote Start • Real-time traffic, weather, parking • State of charge & Pre-Conditioning for EVs 14 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Trends in Emerging Devices Synching it all up with the home… Synchronization • The home becomes the hub of personal data • Access via any web-enabled device • Share content across all connected devices • Transition experiences between devices Home Automation • Moisture Sensing, Water Shut Off • Temperature Control • Garage Open/Close • Lights On/Off/Dim • WiFi Touch Pad • IP Cameras 15 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. How Do We Get There? 16 Building the Nation’s Most Advanced Mobile Broadband Experience Sustained Investment: $19 Billion committed to build out AT&T networks in 2011 Accelerated LTE deployment planned to be largely complete by end of 2013 With merger, AT&T can commit to cover 97% of all Americans with LTE 17 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Demand is exploding Innovation is soaring Increased capacity is critical to growth Consumers will benefit 18 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. New Connections for a Digital Life Tammi Terrell Vice President-General Manager San Diego, Las Vegas, Hawaii – AT&T Thank You!