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SBC Media Briefing

SBC Media Briefing. Media Update May 9, 2001 Ross Ireland Senior Executive Vice President, Chief Technical Officer Abha Divine Vice President – Corporate Strategy. our strategy. meeting our customers where they are. SBC’s Fiber Access Deployment.

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SBC Media Briefing

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  1. SBC Media Briefing Media Update May 9, 2001 Ross IrelandSenior Executive Vice President, Chief Technical Officer Abha Divine Vice President – Corporate Strategy

  2. our strategy meeting our customers where they are

  3. SBC’s Fiber Access Deployment • Direct fiber connections bring nearly unlimited bandwidth • PON and WDM make deployment efficient and cost effective • PON: Fiber to multiple customers without intermediary electronics • WDM: Signals as different colors of light on the same fiber

  4. Competitor A’s Fiber Network Silicon Valley San Francisco Bay Competitor A’s Switch Location Competitor A’s Fiber SBC’s Central Offices SBC’s Wire Center Boundaries Competitor A’s Switch

  5. Competitor B’s Fiber Network Silicon Valley San Francisco Bay San Francisco Bay Competitor B’s Switch Location Competitor B’s Fiber SBC’s Central Offices SBC’s Wire Center Boundaries Competitor A’s Switch Competitor B’s Switch

  6. SBC’s Fiber Network Silicon Valley San Francisco Bay San Francisco Bay San Francisco Bay SBC’s Central Office SBC’s Loop Fiber SBC’s Inter-OfficeFiber SBC’s Wire Center Boundaries Competitor A’s Switch Competitor A’s Switch

  7. Fiber to the Neighborhood … Central Officeor Remote Terminal NeighborhoodGateways Fiber Copper

  8. … Then to the Home Homes and businessesreceive virtuallyunlimitedbandwidth Requires no remote power source Central Officeor Remote Terminal Splitters 32-38 homesor 12 businesses WDM allows multiple homes or businesses to be served by a single fiber connection Splitter is the size of abubble gum pack

  9. Access • SBC’s core data strength • High-speed access technologies form the foundation for all advanced services • Leased lines • ATM, frame relay, gigabit ethernet • Optical connections • DSL

  10. DSL Deployment Central Offices 1, 3 0 0 0 0 0 0 0 0 90 percent of total Pronto target

  11. 17,000 projected by 2003 DSL Deployment Neighborhood Gateways 3, 0 0 0 0 0 0 0 0 0

  12. SBC is the nation’s largest DSL provider DSL Deployment DSL Subscribers 9 4, 0 0 0 5 0 0 0 0 0 0

  13. Project Pronto: The Next Phase • Broadband platform for 10-20 years • Enhanced scalability for DSL • Fiber for more businesses • Enhanced reliability • “Future-proof” architecture • Supports an array of advanced services

  14. SBC’svision Be the only communications company our customers will ever need

  15. Building Solutions NETWORK ACCESS

  16. NETWORK ACCESS Network • SBC’s network is the backbone transport for all voice and data traffic • Switched • ATM • IP • Business networks allow workers to share information throughout an enterprise • LANs and WANs • Virtual private networks • Managed services

  17. SBC IP Backbone Traffic by Product Mbps

  18. “ Sweet Spot” SBC DSL customer base EOY 2000 IP Backbone Cost Curve $2,200 $1,950 $1,700 $1,450 $1,200 5 Yr. WA Cost Per Mbps. $950 $700 $450 $200 50 100 250 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 8,000 10,000 Number of DSL Subscribers (000)

  19. IP Backbone Buildout

  20. Benefits of Our Approach • Efficiently handles IP traffic growth • Service level agreements (SLAs) • Differentiated products and time frame • Satisfies need for native transport

  21. Building Solutions HOSTING NETWORK ACCESS

  22. HOSTING ACCESS NETWORK Hosting • Key to enabling customers to capitalize on our network and access • Ensures reliable, always-on Internet presence

  23. HOSTING ACCESS NETWORK Hosting: Data Centers • $50 million facilities in Dallas, Irvine • Powered by Cisco equipment • Multiple DS3 Internet connections • Redundant power • Fire suppression and environmental controls • 24-7 monitoring • Infrastructure services

  24. HOSTING ACCESS NETWORK Hosting Services • Dedicated • Shared • Collocation • Internet data centers

  25. HOSTING ACCESS NETWORK Hosting Market Growth Managed CAGR 96% Hosted Apps CAGR 41% Collocation CAGR 51% Shared CAGR 23% Source: Forrester, 1999. Yankee Group, 1999. SBC region based on 41% of U.S.

  26. Building Solutions APPLICATIONS HOSTING NETWORK ACCESS

  27. HOSTING ACCESS NETWORK Applications APPLICATIONS • Advanced services that add functionality to Web sites and networks • A platform for ASP services • The fastest, most reliable path from customer to content

  28. Broadband Solutions: The Ideal Platform Hosted Contentat SBC IDC End-to-end accessthrough SBC’s network Faster, more reliablebandwidth Home or business CorporateNetwork ore-businessNetwork Fiber or DSLbroadband connection SBC Data/IPNetwork Internet Content “Best effort” architecture of Internet: speeds can vary

  29. SBC Content Navigator SBC Broadband

  30. SBC Content Navigator SBC Broadband

  31. APPLICATIONS HOSTING ACCESS NETWORK Applications • SBC is introducing applications through its subsidiary, Sterling Commerce, one of the world’s leading e-business application providers • Sterlingcommerce.net • Sterling eTransaction Manager

  32. Ecommerce Endgame: From Convoluted …

  33. … To Convenient and Cost-Effective

  34. Building Solutions APPLICATIONS MANAGEMENT INTEGRATION HOSTING CONSULTING NETWORK ACCESS

  35. APPLICATIONS HOSTING NETWORK ACCESS Consulting, Integration and Management MANAGEMENT INTEGRATION CONSULTING • These offerings help businesses identify the options that best suit their needs, and making sure that all services work together to maximize benefit and performance • Management consulting • Process integration • Network integration

  36. Building Solutions SOLUTIONS APPLICATIONS MANAGEMENT INTEGRATION HOSTING CONSULTING NETWORK ACCESS

  37. APPLICATIONS MANAGEMENT INTEGRATION HOSTING CONSULTING NETWORK ACCESS The End Result SOLUTIONS solutions Products and services combined and customized to meet specific needs of businesses or industries

  38. HIPAA Daunting challenge for health care and insurance companies SBC solution combines consulting and integration expertise with networking applications SOLUTIONS APPLICATIONS MANAGEMENT INTEGRATION HOSTING CONSULTING NETWORK ACCESS Customer Solutions

  39. HIPAA Daunting challenge for health care and insurance companies SBC solution combines consulting and integration expertise with networking applications ANX Automotive suppliers need high-speed access to Big threee-commerce network SBC solution combines high-speed access with e-commerce application and integration SOLUTIONS APPLICATIONS MANAGEMENT INTEGRATION HOSTING CONSULTING NETWORK ACCESS Customer Solutions

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