The New AT&T, the iphone and the rise of the digital community

Transcription

1 The New AT&T, the iphone and the rise of the digital community Mark Collins VP, Consumer Data AT&T Mobility

2 Cautionary Language Concerning Forward-Looking Statements Information set forth in this presentation contains financial estimates and other forwardlooking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this presentation based on new information or otherwise. This presentation may contain certain non-gaap financial measures. Reconciliations between the non-gaap financial measures and the GAAP financial measures are available on the company s website at Page 2

3 connect people everywhere they live and work and do it better than anyone else Page 3

4 The New AT&T Premier communications company in the U.S. one of the largest in the world Employees in every U.S. state and in more than 60 countries One of the very top Fortune 500 companies One of 30 companies comprising the Dow Jones Industrial Average Page 4

5 Traditional AT&T Service Regions California Nevada Kansas Wisconsin Michigan Missouri Illinois Indiana Ohio Kentucky Tennessee Oklahoma Arkansas North Carolina South Carolina Connecticut Texas Alabama Georgia Mississippi Louisiana Florida Page 5

6 The New AT&T The nation s leading provider of local and long-distance voice services A company customers have known and trusted for more than 125 years but we re also a whole lot more Page 6

7 Industry Leader Wireless services with 63.7 million subscribers Broadband or high speed Internet DSL, with more than 13.3 million lines in service Business voice and data services Video services, with over 1.9 million subscribers Page 7

8 The Future Is Wireless Wireless from AT&T has nation s largest digital voice and data network AT&T s new 3G or third-generation network is a super-fast, IP-based simultaneous voice and data network AT&T delivers the widest international coverage of any U.S.- based wireless carrier We provide more than 57,000 hot spots Wi-Fi access points in 83 countries Page 8

9 Wireless Innovations Consumer products RAZR and Black RAZR LG CU500 itunes Phones Push To Talk GoPhone Pantech C300 Page 9

10 Wireless Innovations Business products Introduced BlackBerry wireless World s largest provider of BlackBerry solutions Introduced the first wireless Palm device Mobile on multiple platforms Laptops with wireless wide-area network capabilities EDGE-enabled BlackBerry, and Pocket PC Smartphone enabled for Microsoft Windows Mobile 5.0 software Page 10

11 AND OUR LATEST INNOVATION IS OF COURSE Page 11

12 The iphone is going to be a game changer. AT&T Chairman and CEO Randall Stephenson Page 12 Copyright 2007 AT&T. All Rights 2006 Reserved. AT&T Knowledge Ventures. All rights reserved.

13 The iphone is More than a Music Phone iphone combines a mobile phone, a widescreen ipod, and an Internet communications device with desktop-class , Web browsing, maps and searching into one small, lightweight handheld device A Widescreen ipod Touch controls allow users to access music, audio books, videos, TV shows and movie content on a 3.5 inch widescreen display or sync from the itunes library A Revolutionary Phone Automatically syncs all contacts from a PC, Mac or Internet service and allows users to listen to voic messages in any order just like Page 13

14 The iphone is A Breakthrough Internet Device Features a rich HTML client and Safari the most advanced Web browser on a portable device which automatically syncs bookmarks from the PC or Mac, in addition to built-in Google and Yahoo! search iphone is multi-tasking allowing users to read a Web page while downloading in the background Multi-touch Features most revolutionary user interface since the mouse allowing users to control everything with their fingers Intelligent Full QWERTY soft keyboard lets users easily send and receive SMS messages in multiple sessions, and the keyboard is predictive so it prevents and corrects mistakes Page 14

15 The iphone is cool but we were just getting started Page 15

16 Video Share Page 16

17 emusic Only AT&T Lets You Download Songs from emusic Directly to Your Phone With emusic customers can download songs to a wireless phone over-the-air emusic offers a wide selection of independents artists and 2.5 million tracks $7.49 a month for 5 songs a month to your phone with dual-delivery copy delivered to PC Page 17

18 My MediaNet Customer receives an invitation/link to personalize their wireless browse experience Customer clicks on the link, lands on a Configuration Page, and is offered the opportunity to personalize their service Personalization items can include Sports, Weather, Finance, and other content providers The customer s new, personalized Media Net experience is immediately available Page 18

19 All of these products are in response to our emerging Digital Lifestyle The three critical screens AT&T is integrating its networks and applications to deliver services to the three screens that matter most: the TV, the PC and the wireless handset Page 19

20 And it s all about CONTENT: Mobile phones, networks and services have already transformed the way we communicate via voice and messaging ( , text, IM). Page 20

21 Some Facts 242,904,210 Wireless Subscribers as of Sept 6 th Over 100M new phones sold every year in the US Average lifespan of a phone is 15 months. In some demos its <12 months Penetration of wireless service in youth segments are growing rapidly: year old: 87% year olds: 75% year olds: 49% 9-10 year olds: 24% And teens/young adult overindex in mobile usage by 3-5x vs. the average Page 21

22 Radical growth in data revenues Total Reported Wireless Data Revenues Up 77% Year-Over-Year $18,000,000,000 $16,000,000,000 $15,216,734,529 $14,000,000,000 $12,000,000,000 $10,000,000,000 $8,581,782,796 $8,000,000,000 $6,000,000,000 $4,604,795,077 $4,000,000,000 $2,000,000,000 $0 $1,858,063,984 $904,703,958 $211,215,669 $544,956, Page 22 Source: CTIA Semi-Annual Wireless Survey

23 Monthly text messaging traffic Text Messaging Has Rocketed from 14 Million Messages a Month to Almost 19 Billion Messages a Month in Six Years 20,000,000,000 18,705,973,892 18,000,000,000 16,000,000,000 Number of Monthly Messages 14,000,000,000 12,000,000,000 10,000,000,000 8,000,000,000 6,000,000,000 4,659,442,602 9,762,270,578 4,000,000,000 2,000,000, ,075,320,313 1,022,852,479 14,402, ,825,025 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Page 23 Source: CTIA Semi-Annual Wireless Survey

24 There are already over 100M Data Users in U.S. 120,000, ,000,000 99,058,093 80,000,000 72,766,814 60,000,000 49,164,259 40,000,000 24,848,508 20,000,000 12,783,998 Page 24 0 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Reported Number of Handsets Actively Using Data Services on Network Source: CTIA Semi-Annual Wireless Survey

25 Mobile content revenues already exceed $1B Total Reported Downloadable Content (including games, and gameplay) $1,200,000,000 $1,128,039,954 $1,000,000,000 $846,028,857 $800,000,000 $600,000,000 $593,959,708 $478,452,000 $400,000,000 $200,000,000 $122,740,031 $142,811,323 $0 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Page 25 Source: CTIA Semi-Annual Wireless Survey

26 Service capability has radically advanced in 6 years Voice Text Built in ringtones & Snake game Voice Text Color screen Downloadable polyphonic ringtones Mobile Internet (at dial up speeds) Camera (Attachment) Embedded Low-res Camera + Multimedia Messaging Color screen Downloadable master ringtones Downloadable Java games & Applications Faster XHTML Mobile Internet 2 Mega pixel camera Broadband Speed and internet browsing Streaming audio and video Downloadable Music & rights management Advanced Java games & Applications Page 26

27 Don t call it a phone. It s much more of a: voicetext addressbookalarmclockinternetcamcord ercamerastreamingradiomp3playerbroadbandmusictvvi deoplayergpsnavigatormobilebankingmaybewalletgpsn avigator that is always-with-you, on-24-hours, connected-to-billions-of-people & computers and a- statement-about-me device = Page 27

28 Did you know you could (already)? Watch video that your friend is recording, in real time, while talking on the phone? Get full motion weather radar and hurricane tracking? Get turn by turn spoken directions while you drive? Listen to your favorite satellite radio station? Get play-by-play game updates? Upload photos to your MySpace page? Page 28

29 AND, did you know that you can soon? Download music from Napster over your AT&T mobile phone Yesterday AT&T announced that beginning in November, the Napster Mobile service give our customers access to five million songs Customers will have the option to download five tracks a month for $7.49 or purchase songs ala carte for just $1.99 And, Napster Mobile has joint delivery, getting a track on your handset and duplicate copy on your PC at not additional charge Page 29

30 How it works SELECT the music hard key and select Shop Music. Choose Napster, preview & select a song. PURCHASE the song. $1.99 per track or $7.49 for five it all goes straight on your bill. 4 DOWNLOAD straight to your phone. It takes less than 30 second and get a copy sent to your PC by . ROCK and groove to the hottest music. Immediately. Page 30

31 Benefits Key Benefit: Napster Mobile is the fastest way to get the music you want when you want it. Other Consumer Benefits: Own a song faster than you can listen to one Satisfy the urge: Make the song that s running through your head yours to own. Discover: Browse tracks and editorial from a catalog of over 4 M. Listen: Sample the goods with 30 second previews. Manage: With ease by getting a copy on both your wireless phone and PC. Forget: About tethering your music subscription. Song libraries are validated over the air. Page 31

32 So what s next, how about Page 32

33 AT&T Mobile TV Live Broadcast TV from AT&T Mobility and MediaFLO Page 33

34 BUT.All The Digital Bells and Whistles Never Replace Our Commitment To our Traditional Community Fortune magazine has ranked us the most admired telecom company in the U.S. and the world The AT&T Foundation, combined with BellSouth and Cingular giving, has more than 60 years and $1.8 billion in philanthropic commitment to communities Nearly 350,000 employees and retirees serve their communities through the AT&T Pioneers organization We ve been recognized on many occasions for our commitment to diversity Page 34

35 And Speaking of Diversity AT&T Is Committed To being a corporate leader in diversity AT&T is No. 3 on DiversityInc s 2007 Top 50 Companies for Diversity AT&T s 50-state workforce is 46 percent female and 38 percent people of color AT ranked in the top 10 among the Fortune Global 200 largest companies for its high percentage of female board members Page 35

36 Your World. Delivered. communications and entertainment services available from one provider family Page 36