4 FISPA - AT&T Program Overview FISPA – master agreementMember Companies – participation agreementBenefits and OffersMonthly service discounts (varies by product)Applicable for voice, data & messaging productsEquipment discounts / free devicesOnline portal for adds, moves, changes and billingMembers can select any Mobility product / service offeringCurrently negotiating agreement with FISPAM2M / WWANSeparate agreement negotiated with each member companyM2M / WWAN – primary / fail over capabilities
6 Mobile Share voice, text and data plans Flexible data plans to accommodate usage requirements24 groups per accountUnlimited voice and text (SMS, MMS) includedAdd features as needed to individual mobilese.g., international roaming, ePTT, navigation
7 Mobile Share data plans Data only devicesFlexible data plans to accommodate usage requirements24 shared groups per accountAdd features as needed to individual mobilese.g., international roaming
8 Pooled Voice Plans Manage voice usage across the enterprise Balance high usage with low usageEliminate domestic overagesAdd features as needed to individual mobilese.g., international roaming; ePTT; messaging
9 Pooled Data Plans Data only devices Manage data usage across the enterpriseBalance high usage with low usageEliminate domestic overagesNew – 10 GB data plan optionAdd features as needed to individual mobilese.g., international roaming
10 Individual Data Plans Options to accommodate all users Smartphones, tablets, data modemsTethering / Hotspot capabilitiesAdd features as needed to individual mobilese.g., international roaming
12 Safe Harbor StatementCautionary Language Concerning Forward-Looking StatementsInformation set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might 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 and revise statements contained in this presentation based on new information or otherwise.
13 Today’s Mobile Devices Mobile Device Evolution Driving Data Growth More capable Smartphones means more engagement with devicesLegacy Mobile DevicesToday’s Mobile DevicesPhone CallsLimited Web BrowsingComplex ApplicationsStreaming VideoExtension of Office PCSmartphones, Branded Computing Devices, and Emerging DevicesAT&T has experienced unprecedented mobile Internet growth …25,000% wireless data increase over last 5 yearsAs smartphones have become more capable, customers have enjoyed using their devices moreOlder mobile devices didn’t have as many capabilities and were used mainly for placing calls, there was some functionality, but there were no compelling applications. They had lower processing speed, smaller capacity, and they were more bulky. Today, phones have incredible processors, great resolution, and can support vary innovative applications and can even be used as an extension of an office PC.The increased usability and functionality of these devices combined with a proliferation of data driven applications has resulted in huge data consumption.This is confirmed with the data traffic on our network up around 25,000% over the last 5 years between 2007 and 2012.
14 Investing in Our Future…and Yours Evolving the network to provide you the best mobile Internet experienceInvestment>$98 billion invested in our wire line and wireless networks over the past five years ( )In 2012, invested nearly $20 billion, including more than 160,000 wireless network improvementsExpect to invest in the range of $21 billion in 2013In 2012, announced three year $14B investment plan with Project Velocity IP ( )To support increasing data consumption and continuing network evolution, AT&T continues to invest in our wireless network.-$98 billion wireline and wireless investment over the past five years, more than any other public companyIn 2012, we invested nearly $20 billion in our wired and wireless networks, including more than 160,000 wireless network improvements, including:(T-Mobile only $4B inAdded 766,000 Square Miles of 4G coverageInstalled 849 Distributed Antenna Systems (public and enterprise)Deployed 81,000 new antennasGrew to more than 33,000 AT&T Wi-Fi Hot Spots in serviceLaunched an initiative to deploy more than 10,000 macro sites, 1,000 distributed antenna systemsInvestment in our wireless and wireline networks is expected to be in the range of $21 billion in 2013, with about 60 percent of that to be spent on wireless.In late 2012, AT&T announced Project Velocity IP, which included plans to significantly expand and enhance our wireless and wireline IP broadband networks to support growing customer demand. As part of the investment plan, AT&T will boost capital spending by about 16 percent to $22 billion a year for the next three years to upgrade the wireless and wireline networks. AT&T's Project VIP consists of several initiatives, including:Enhance and expand wireline IP network to 57M customer locations, covering 75% of customer locations in wireline service area by YE 2015Expand fiber network to reach an additional 1M business customer locations by YE 2015And from a wireless perspective, initiatives include 1) 4G LTE expansion, with plans to expand to cover 300 million people by the end of 2014SpectrumDensification & Small Cell TechnologyWireless is our number one investment priority and we are working relentlessly to provide our customers with the most capacity, best coverage, and highest mobile Internet experience.
15 Now Available in 325 Markets The Nation’s Fastest 4G LTE Network Dual-layered 4G technologies for the best overall broadband experienceNow Available in 325 MarketsAT&T 4G LTE reaches more than 200 million people*More than double number of people covered in 2012 (vs. year-end 2011)Expect to cover 300M people by year-end 20144G network covers more than 292 million peopleNation’s largest 4G networkVirtually 100 percent of AT&T’s wireless network covered by HSPA+Over 90 percent of mobile data traffic runs over enhanced backhaulCustomers still have access to fast 4G speeds with HSPA when they go outside of a 4G LTE areaAT&T delivers 4G using two complementary technologies — LTE and HSPA+ with expanded backhaul – to deliver a widespread, ultra-fast and more consistent 4G experience.LTE: Deployed the nation’s fastest 4G LTE in 325 markets, reaching more than 200 million people.-More than double the number of people covered in 2012 vs. year-end 2011.-Plans to expand 4G LTE to 250 million people by year-end 2013 and to 300 million by year-end 2014.-AT&T LTE supports average data rates of 5-12 Mbps in the forward link, and 2-5 Mbps in the reverse link.-LTE technology also offers lower latency, or the processing time it takes to move data through the network.HSPA+: Complementing our 4G LTE network is HSPA+ with expanded backhaul, which enable 4G speeds. Typical download speeds range from approximately 2 Mbps up to 6 Mbps where AT&T has enhanced backhaul connections in place.Virtually 100 percent of AT&T’s wireless network is covered by HSPA+We are rapidly expanding Ethernet and fiber to cell sites nationwide -- adding new cell sites weekly – and almost 90 percent of our mobile Internet traffic on expanded backhaul. With LTE and HSPA+, AT&T has the nation’s largest 4G network covering more than 292 million people as well as the nation’s fastest 4G LTE network.As our 4G LTE footprint continues to grow, customers with compatible devices outside of 4G LTE areas will still have access to consistently fast mobile Internet speeds through HSPA+ for a widespread, ultra-fast and consistent 4G experience from AT&T.* Limited 4G LTE availability in select markets. 4G speeds are delivered by HSPA+ (with enhanced backhaul) or LTE, where available. Compatible device and data plan required. LTE is a trademark of ETSI. Learn more at att.com/network.
16 AT&T plans to begin deployment of LTE-Advanced in 2013 LTE - Advanced Advancing and Evolving the AT&T 4G NetworkHeterogeneousNetwork TopologyCarrierAggregationHigher peak data ratesMore efficient use of spectrumIncreased number of simultaneously active subscribersImproved performance at the cell edgeFeaturesAdvancedMIMOAT&T plans to begin deployment of LTE-Advanced in 2013Carrier Aggregation increases transmission bandwidths in order to achieve very high data rates; allows operators to bond multiple downlink channels (different types of spectrum) to create higher throughput.Advanced MIMO (Multiple In/Multiple Out), a radio antenna technology that uses multiple antennas to increase capacity and improve range; instead of 2 antennas at each end there can be 4x4 or even 8x8.Heterogeneous Network Topology uses network intelligence to enable small cells and Wi-Fi hotspots to tightly integrate with the wider (macro) network without risk of interference. It also provides enhanced coverage and capacity and allows us to target capacity to demand. This combined network is commonly called a hetnet.
17 AT&T Antenna Solutions Augmenting Your Wireless Access Experience Providing you flexible network access methods for enhanced coverageAT&T Wi-FiAT&T Antenna SolutionsNation’s largest Wi-Fi network*Deployed Wi-Fi hotzones with expansion plans30K – plus domestic HotspotsTargeting locations that typically experience high- volume data usage with distributed antenna systemsWi-FiAT&T has the nation’s largest Wi-Fi network* with more than 32,000 hotspots in the US, and access to nearly 402,000 hotspots globally through roaming agreementsVirtually all new AT&T smartphones come equipped with Wi-Fi technology, and Wi-Fi use doesn’t count toward customers’ smartphone data plans.In addition, AT&T has deployed Wi-Fi hotzones to supplement mobile Internet in urban areas with consistently high mobile Internet use.Hotzones enhance the broadband experience for AT&T customers who use Wi-Fi enabled devices.Wi-Fi hotzones provide another fast and reliable way for customers to stay connected from their mobile devices, adding data network capacity in high traffic areas.AT&T deployed Wi-Fi hotzones in NYC’s Times Square, near Rockefeller Center, St. Patrick's Cathedral and along Park Avenue. Wi-Fi hotzones are also available in downtown Charlotte, N.C., Chicago’s Wrigleyville, downtown Indianapolis, San Francisco’s Embarcadero Center and in Silicon Valley on Palo Alto’s University AvenueAT&T plans to deploy additional hotzones in other urban areas across the country with consistently high data useAT&T also formed Antenna Solutions, which is charged with building antenna distribution systems in hundreds of large public venues around the country. The team is dedicated to delivering exceptional service to customers in locations that typically experience high-volume data usage, such as sporting events, concerts, and convention facilities to provide exceptional service*Largest based on branded and operated hotspots. Wi-Fi enabled device required
18 Meeting our Customers’ Demands Final ThoughtsContinuing investmentDriving innovationAdvancing network enhancementsIncreasing qualityImproving the end to end business experienceMeeting our Customers’ DemandsAT&T - The nation’s fastest 4G LTE network.
19 AT&T Mobile Applications M2M / WWANMobile Resource ManagementBusiness MessagingEnhanced Pushed to Talk (ePTT)Mobile Device Management19
20 Driving Innovation – Broadest Mobility Portfolio Available Transforming your business by mobilizing your business processesMachine to MachinemHealthMobile Enterprise ManagementCommunications and CollaborationMobile Applications and ServicesMobile Marketing and MessagingMobile Professional ServicesCritical CommunicationsField Service SolutionsMobility is transforming how we live and work - all enabled by a rich variety of endpoints and applications. Mobile apps seem to be everywhere and they are quickly becoming the indispensable everyday tools that allow your employees not only to communicate, but also collaborate and problem-solve real business problems in real time. And AT&T has a broad array of mobile applications to solve business problems.[See App categories]AT&T has also set up Innovation Centers to help venture capitalists, developers and startups meet with AT&T and help fast track approved projects to market.AT&T Foundry innovation centers - environments designed to foster collaboration and improve project cycle time from idea to market by threefold
21 AT&T Mobile Application Alliance Engagement Model 12345DevCentral CertifiedJoint Sales & MarketingVARAT&T Network Integration (NI)Third party application certified through devCentralMinimum requirement for any sales and marketing engagementCertified network compatible devices.Joint sales and marketing engagements and client supportAT&T bills for wireless servicesThird party bills for application and/or professional servicesFormal co-sell relationships through IMAP (alliances drive AT&T activations)Software + Device + Bill + Support = SolutionVendor packages the end-to-end solution; acts as a reseller of AT&T services; works in isolation from AT&T channelsAT&T packages applications, and or professional services in custom bill.Supplier provides solution to customer.AT&T sells end-to-end managed (often hosted) solutions for clientsAT&T may add value to offerAT&T bills for software / deviceAT&T provides tier 1 support21
22 Wireless WAN Connectivity Service: Solutions to Meet Business Requirements Telemetry(Industrial/Monitoring/ATM/Kiosk)Primary WAN(Temporary/Disaster Recovery)Mobile(Public Safety/Transportation/Workgroups)Backup WAN(Primary Circuit Outage)Challenges:To get connectivity where and when neededTo maintain reliable network connectivityTo build a cost effective solutionWireless WAN Connectivity provides:Diverse, cost-effective backup for data applicationsGood ISDN alternative for T1 backupQuick deployment for new applications, remote locations, or mobile workersConsistent network connectivityPrimary connectivity for low-bandwidth / telemetry applicationsDevices to meet specific application needsWWAN solutions include three main elements:A cellular enabled router (CER) a.k.a. Wireless router / WWAN router or Cellular modemA cellular IP connectionConnectivity to a network-based WAN solution or IP/Frame/MPLS port at customer host siteWWAN solutions can be implemented as backup connectivity to WAN circuits for low-bandwidth connectivity when wireline solutions are unavailable. It can also provisioned temporarily when wired services will take too long to install.The focus on backup rather than primary applications is due mainly to the fact that rate plans for WWAN connectivity are usage based or metered, rather than unlimited.Wireless may not be suitable for applications requiring low latencyBecause of this, alternative transport technologies may be more cost effective for bandwidth intensive applicationsLocation Flexibility - transmit/receive information from virtually anywhereTrue Diversity - avoid wireline cut/outage/repair issuesEconomical - Less costly than landline for lower bandwidth applicationsRapid Deployment – deploy incremental devices in daysCustomizable – flexible connectivity and configuration optionsAlliance Ecosystem - dependable support and alliances with leading hardware vendorsAT&T provides customers the benefit of integrated wireless and wire line primary and backup connectivity solutions through a single provider.22
23 Wireless WAN Cellular Connectivity to Corporate Resources and Applications AT&T Mobility NetworkPrimary WANBackup WWAN ConnectionCellular Enabled RouterStandard RouterPrimary ConnectionBackup ConnectionAT&T Mobility NetworkPrimary WWAN ConnectionWWAN solutions include three main elements:A cellular enabled router (CER) a.k.a. Wireless router / WWAN router or Cellular modemA cellular IP connectionAnd connectivity to a network-based WAN solution or IP or Frame port at the customer host siteWWAN solutions can be implemented as Backup connectivity to WAN circuits or as Primary Low-bandwidth connectivity when wireline solutions are unavailable, will take too long to install, or are too expensive. The focus on backup rather than primary applications is due mainly to the fact that rate plans for WWAN connectivity are usage based or metered, rather than unlimited. Because of this, alternative transport technologies may be more cost effective for bandwidth intensive applications.WWAN Router connects remote devices to cellular IP Network12Traffic is sent across high-speed cellular IP network3Remote locations connect to host applications23
24 Mobile Resource Management Providing workforce management tools that enhance the productivity of mobile workers.Features of Mobile Solution:GPS tracking and reporting including geofences and alertsWireless forms with barcode capabilityJob dispatchingWireless timecards for individuals and teamsSignature and image capture for proof of deliveryGPS NavigationAutomated reporting and safety alertsPotential Benefits:Improve productivity by routing workers appropriately or improving workflowsControl costs by simplifying and improving time and labor management or by replacing paper-based processes with customized wireless formsShow compliance and meet regulatory needsUse intuitive web portal for access to detailed location maps, tracking, alerts, and both real time & historical reports.AT&T’s Mobile Resource Management solutions combine the latest advances in GPS, wireless and Web interfaces to turn aSmartphone into a complete Mobile workforce and asset management solution automating antiquated manual workflow processes.These solutions extend your back-office systems to the field using back-office integration providing management with real-time visibility of field workers. Features include: GPS tracking and Navigation, Wireless timecards, Wireless forms and signature capture, Job Dispatching, Proof of delivery and instantaneous billing capabilities.Complimentary to our MRM solutions, AT&T also provides persistent connectivity VPN solutions to keep mobile workers authenticated while accessing different networks, across coverage gaps and can suspend and resume device activity without having to re-login.Measurable impact on operational efficiencies and green initiatives:Save timeSave paperReduce errorsStreamline information flowTeleNav Track Premium includes mobile forms for capturing information.24
25 Business Messaging Enhanced Enterprise Grade Messaging Platform xxx Features of Mobile Solutions:Delivery confirmation & longer msgs24/7 Enterprise Technical Support2-way group notification & responseUse with all AT&T devices w/ SMSConnect via SNPP, WCTP, SMTP, TAPConnect w/ VPN, frame relay or MPLS*Integrates easily with most applicationsPotential Benefits:Enables large group notification via SMS without spam controlsProvides delivery confirmationPrice: $9.99 per user /month for unlimited messages or $3.00 per user /month for basic access (recipient pays for each message)*Compatibile with a wide range of applications, devices and solutionsxxxBusiness Messaging is an SMS gateway solution designed to enable enterprise and government organizations to upgrade from their existing consumer SMS messaging gateways to an enterprise grade platform for the same price. This new enhanced platform provides a more secure and reliable method of communication to your field workers and offers the following features/benefits over existing consumer gateway utilization.• Critical alerts - (network, disasters, technical issues)• Removes consumer gateway latency- offers 97% delivery under 2 minutes• Ability to filter out unwanted SMTP messages• Two-way remote worker notification and response• Large group notification without traditional blocking• Application to Mobile - (Applications: Outlook, BNC, Remedy, HipLink) (Protocols: SNPP, WCTP, SMTP, TAP)• Delivery confirmation and longer messages (420 Characters)• Compatible with any device capable of receiving text messages• 24/7 technical support-Pricing plans for most usage scenarios• Business Notification Center website for group notification25
26 AT&T Enhanced Push-To-Talk Communicate Instantly with ePTTFeatures of ePTT:Large contact lists - up to 1,000 contactsGroup calling - up to 250 people simultaneously with the push of a buttonBroad selection of smartphones, rugged phones and specialty devicesTalk and use productivity applications simultaneouslySee who’s available to talk immediately with AT&T Enhanced PTT’s presence status indicatorsSupervisors can override PTT calls to communicate important to their teamsAccess to AT&T’s 3G, 4G and 4G LTE networksUse mobile applications, GPS or cameras on your phones during PTT callsPotential Benefits:Save time on callsIntegrate with MRM and fleet solutions for improved productivityReplace EOL iDen solutionCompatibile with a wide range of applications, devices and solutionsAT&T Enhanced PTT is an IP-based end-to-end communications and applications platform that offers fast, sub-second performance,advanced features, a broad portfolio of compatible smartphone and rugged phone devices, integration with an array of advancedmobility applications – and expansive coverage on the nation’s largest 4G network.Superior PTT features and user experienceSub-second latency, Fast call setup times, View real-time presence/status of your talk group members, Instant Alert, Supervisory override functionality, Optional interoperability with LMR systems.Broadest choice of devices and PlatformsWe are taking a smart phone centric approach to PTT that differentiates us from competition. We will have feature phones but we are leading with smart phones.We can aggressively upgrade the platform with smart phones.Can layer application on top of service for future upgrades. VZW/Sprint are tied to CDMA and feature phones limiting upgradeability.Downloadable client on smartphone is easily updated.We are the only carrier offering PTT over LTE. It doesn’t require LTE. Its going to work on 4G LTE, 4G HSPA+, 4G HSPA and EDGE.Large contact lists (up to 1000 contacts) and increased group sizes (up to 250 participants per talk group and up to 100 talk groups)xxx26
27 Good for EnterpriseTM from AT&T Good for EnterpriseTM from AT&T is a secure messaging and mobility device management solution.Features for Mobile Solutions:Good Mobile MessagingGood Mobile ControlGood Mobile AccessPotential Benefits:Secure device management through portal or web consoleOvercome security concerns with Good Technology’s “Containerization” to keep enterprise data separate from personal dataHelps companies integrate various devices into the corporate space to reduce IT breaches and increase productivityPrice:Pricing is based software server purchase, tiered Client Access Licenses needed, and related Support Options chosenAn Enterprise Data plan is required with this solutionGood for Enterprise is applicable to all business segmentsUsually 50+ users, but there are no restrictionsAverage deployment is 500+ usersVertical Markets that are a “Good” fit include:Federal GovernmentLocal/State GovernmentHealthcareEducationFinanceToday’s enterprises are more mobile than ever with a multitude of operating systems, carriers, smartphones and tablet devices, many organizations riskbeing overwhelmed by the complexities of their mobile inventory. IT departments face significant disruptions to traditional information security due to:Rapid introduction of new devices – smart phones, tablets and PCsMultiple mobile operating systemsEmployee requests and trendsIn addition to concentrating on traditional core requirements, IT departments are not fully equipped to handle mobile device activationand deactivation, device security and support, application deployment, security and the demands of Bring Your Own Device (BYOD).Meanwhile, enterprises are pressed to deliver better and faster access control, compliance and self-governance, and policy deploymentand enforcement.(Good for Enterprise Application)Good for Enterprise can be used on handheld devices and tablets with a variety of OS’s including iOS, Android, Symbian, and Windows Mobile 6.5
28 AT&T Enterprise Mobile Device Management – Mobile Iron Making Smartphones Enterprise ReadyFeatures for Mobile Solutions:Multi-OS, multi-carrier device managementAdvanced SecurityRemote ControlProvision, configure and troubleshoot with minimal user interruptionPotential Benefits:Get smartphone operations under controlProtects sensitive corporate data on smartphone devicesMonitors and prevents unauthorized devices from accessing the corporate networkPrice: ~$4 - $7 per month per subscriber; Professional services (installation, training) starts at $3000Application ManagementSecurity ManagementEnterprise ManagementLoss & Theft ManagementExpense ManagementRemote Management
29 Controlled by the Business AT&T Toggle - Advanced Mobile Workspace Management SolutionSeparates, protects and manages a corporate Workspace on an employee’s personal Android device (Smartphones, Tablets) regardless of carrierDual ModePersonal Space Personal side stays “personal”Toggle Workspace Controlled by the BusinessBusiness ModeControlled by the BusinessNot touched by the businessPersonal activities remain privateProtected access to personal apps:Social mediaMulti media downloadsaccountsShopping sitesGamingEncrypted , contact and other EAS featuresPrevent apps from writing to SD cardAccess to corporate-approved applicationsPIN/Password protected workspace and applicationsRemote wipe only Toggle workspaceHighly Secure storage and policy-based secure networkingCorporate policy management via the Toggle Administrative Management ConsoleAT&T Toggle is a cloud-based Workspace Management platform. It provides a secure mobile workspace on employees’ mobile devices that can be centrally managed by enterprise IT administrators. It allows businesses to easily separate, control and manage business apps, content and data on today’s most popular mobile devices and operating systems, while leaving personal data alone. The newest version of AT&T Toggle can be used on smartphone or tablet devices running Android™ OS versions 2.3 through 4.1.x, and iOS™ versions 5.0 through 6.0.x on virtually any service provider.One DeviceAT&T Toggle