1. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement Vendor Communications Conference – May 3-4 AT&T Quality Assurance (AQA) Center For Learning Irving, TX Paul Frederick Area Manager

2. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement Topics  2009/2010 Vendor Performance Expectations  2010 Top Performers  2011 Chairman’s Priorities  2011 Vendor Performance Expectations  2011 Vendor Caused Outages Review  Key Take Away Messages 2

3. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement 1.Zero Defects (ZD) 2.Zero Outages (FCC, PUC, CAI and Non CAI) 3. 95% or greater Overall Performance Scores (OPS) 4. Timely completion of work (OTD) 5. Process Compliance 6.Strategic Partnership What were the 2009/2010 vendor performance expectations? DEFECTS OUTAGES 3

4. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement How well did vendors achieve 2009/2010 expectations? Mobility and Wireline’s data was combined for the 2010 results Consistently improve Performance on all “Big Rocks” dimensions 4

5. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement Vendors who exceeded 2009/2010 expectations  Telecom Technicians Inc (TTI)  Gonzales  KNK  Telecom Expertise Ind. (TXI) Congratulations! Keep up the good work! 5

6. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement What are our Chairman’s 2011 Priorities? We expect our Vendor partners to be “best in class” as they are key enablers of AT&T’s success 6

7. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement 1.Zero Vendor Caused Outages 2. Zero Defects (ZD) 3. 95% or greater Overall Performance Scores (OPS) Continuously elevate performance using Innovation 4. 100% On Time Delivery- Scalable Workforce, Process & Supply Chain 5.Full Process Compliance through in depth knowledge Comply 100% with AT&T Training (e.g. Ask Yourself, New MOP) 6. Strategic Partnership Strengthen Strategic Partnership with AT&T by only accepting and delivering jobs that meet our expectations How can vendors help achieve Chairman’s priorities? Consistently meet all vendor performance expectations! DEFECTS OUTAGES 7

8. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement What can Vendors do immediately to help AT&T succeed? TOTAL VCOs YEARTOTAL 201116* SVP’s challenge, Target = Zero Vendor Caused Outages *4 Months Quickly stop the recent spike in outages, with special focus on Mobility 8

9. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement What is the Key Take Away Message from AQA? In 2010 we had 4 vendors that consistently met AT&T’s expectations. In 2011 we would like to see all of our vendors in this elite group In 2011, our Chairman has put in place some very aggressive priorities to delight our customers and win in the market place. To help us achieve these priorities, we would like you to: Align your operations around our Chairman’s priorities Continuously assess and improve performance to meet or exceed expectations Apply Ask Yourself and the new MOP process to eliminate outages in AT&T offices Use the “4 Eyes” concept to eliminate defects getting to AT&T and our end customers Be a reliable partner that has the capability to scale workforce, processes and supply chain to volume fluctuations We are here as partners to help you succeed. We have AQA resources to help you meet our expectations. So please reach out and ask for help! 9 “Defect Free and On time with No Outages”

10. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement WEST + AK, HI, GU EDWARD G. ENGLISH 925-823-4300 ee1259@att.com NORTH CENTRAL MICHAEL P. NOLAN 262-523- 8705 mn9673@att.com SOUTH CENTRAL PAUL D. FREDERICK 214-464-0905 pf6773@att.com SOUTHEAST & VIRGIN ISLANDS/PUERTO RICO MICHAEL J. CASSIDY 408-980-2313 MC8792@att.com NORTHEAST JIMMY DAVIS 770-992-2438 jd2841@att.com WA OR CA ID NV MT UT AZ ND SD NE MN IA WI IL TX WY CO NM KS MO OKAR HI MI IN OH TN KY WV MS AL LA FL GA VA SC NC ME DC PA VT NY NH NJ DE MD RI CT NYC NH MA How are we structured? 10

11. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. AT&T Proprietary (Internal Use Only) Not for use or disclosure outside the AT&T companies except under written agreement Q and A 11 + Zero Defects after Job Is Complete Zero Defects after Job Is Complete