It cites 'explosive surge' in data, voice and video traffic


AT&T Inc. said today it plans to spend $1 billion in 2008 to expand its IP networks for large businesses, driven by an "explosive surge" in data, voice and video traffic.

AT&T's investment in its enterprise networks represents a 33% increase from 2007 and more than double its investment in 2006, the company said.

AT&T's 2008 network expansion plans include the following:

* Added undersea fiber-optic cable capacity to Japan and other parts of Asia as well as the Caribbean. AT&T plans to invest in multiple undersea cable systems to Southeast Asia and Australia and import existing cable servicing India and the Middle East.

* New Multiprotocol Label Switching routers in Europe, Asia and the U.S., with new or additional MPLS-based IP network access nodes in Paris, Moscow, Kuwait, India, Japan and other countries.

* Enhanced Ethernet network capabilities, including the rollout of a global virtual private local-area network product, initially in the U.S., Europe and Asia-Pacific. AT&T plans to make these services available in 2008 in 14 cities: Frankfurt, London, Brussels, Paris, Amsterdam, Stockholm, Dublin/Cork, Milan, Madrid, Zurich, Hong Kong, Sydney, Singapore and Tokyo. By the end of the year, AT&T expects to have an Ethernet footprint in 39 countries.

* The addition of Digital Subscriber Line as an access alternative to China, Finland, Norway and Saudi Arabia. By year's end, AT&T plans to have DSL available in 21 countries.

"Companies worldwide are responding to the exploding need to deliver voice, data and video in real time to their end users, no matter where they are, no matter what the device," Ron Spears, group president of AT&T Global Business Services, said in a statement. "It is vital that we continue to invest in those geographies and services to meet this demand, so our customers can connect their operations, partners and suppliers."

In the fourth quarter of 2007, AT&T's Global Business Services unit saw hosting revenue grow by 19%, enterprise IP data services by nearly 21%, and VPN revenue by 31%