AT&T and Education From Program to Promise

1. AT&T and EducationFrom Program to Promise May 18, 2012

2. Outline • Background • Why Elevate Education? • The Opportunity • Enter a soaring market • Build our brand • Secure our future • Why AT&T? • Market Analysis • AT&T’s Strategic Education Platform • Goals & Next Steps 2

3. Background

4. Helping others succeed in learning in and out of the classroom is an enduring part of who we are 4 llike this font but make consistent “style sheets” throughout. consistent page numbering throughout gray type smallest type legible are these hearts supposed to be digitized? see original AT&T icon o see. do you still have the AT&T icons.?I think I have in DropBox or can send of not.

5. Nearly 100 years in... $923 million to education and counting I like these fonts and weights.

6. can we jazz up the x and y axis a bit? make lines the same distance away from the side and bottom if possible Our investments made a difference 1 million high school students impacted 200,000 employee volunteer hours 211 Cities 21st Century skills

7. We see limitless possibilities ahead...

8. Why Elevate Education?

9. 256,000 reasons why according to the AT&T style guides I don’t think we are to use bullets like this. what did we use in the InDesign file? also in DropBox for reference. As one of the Nation’s largest employers, we rely on a highly skilled workforce Nearly one fourth of all students – and and nearly 40 percent of African-American, Hispanic and Native American students – fail to graduate with their class By 2016 America will face a talent gap of 7 million skilled workers

10. Our customers care 64% of Americans are worried that high school graduates are unprepared for college or career Just 18% of Americans surveyed gave their kids’ schools a grade of an A or a B, down from 30% in 2005 90% of consumers want to know what companies are doing to support causes they care about, yet most don’t know where AT&T stands

11. these need to be the gradients (color to color that we did in InDesign) and the right color palette, gray type. nice hang tabs. Big change is underway “Education is having its internet moment.” “People are talking about this being an inflection point.” • Rob Stavis, • of venture fund Bessemer Venture Partners • Elliot Soloway, • of The University of Michigan School of Education “Our schools remain the last holdout from the industrial revolution.” • Rupert Murdoch

12. Driven by a confluence of variables left justified - throughout document! no centered this page needs the right color palette, and the good overlapping colors 0 see Indesign big circle diagram to see best color and overlap mix and replicate. Increasing spectrum and download speed High drop out rates Overwhelming penetration of mobile and internet technologies Lack of effective STEM education The Learning Opportunity Unprepared youth Cost affordability of devices Incentives and VC interest in new education models New generation of digital natives Technology trends Educational trends

13. Trends that are relevant to AT&T 50% of K-8 teachers say they use digital games with students 80% of teens own their own cell phone 84% of 8-18 year olds have internet access Education is the #4 category on the iTunes app store 1.5 million iPads are in use in schools 12% of 2-4 year olds use a computer once a day The Learning Opportunity 26% of 1-8 year olds watch education TV shows 46% of Americans use a smartphone 65% of Americans will own a smartphone or tablet by 2015 48% of PreK-12 students will take online class by 2015 44% of textbooks will be e-textbooks by 2017 Technology trends Educational trends make sure to use this typeface for all center notes like this.

14. The Learning Opportunity

15. Enter a soaring market Build our brand Secure our future Seize unparalleled growth and investment opportunity Humanize our brand and resonate deeply with consumers and employees Help build America’s economic health and a skilled employee pipeline Top three reasons why AT&T should lead the education revolution consistency throughout. left justified, gradient boxes in color to color shifts and color palette.

16. Enter a soaring market Build our brand Secure our future Seize unparalleled growth and investment opportunity Humanize our brand and resonate deeply with consumers and employees Help build America’s economic health and a skilled employee pipeline Reason #1

17. Growth across the board: Enter a soaring market INVESTORS CONSUMERS SCHOOLS these needs to be gradients too and can we have them a little bigger and have the rest bleed over like this: no rounder corners along the edge. justified and investors, consumers, schools BOLD is this a AT& font? make consistent with other fonts on graphics. 67% of teachers use technology in every class and 85% use it everyday Learning by phone, tablet, or laptop is expected to grow 31% by 2020 EduTech is a $15 billion market. Investments have tripled in past decade

18. AT&T projections reflect this growth: Enter a soaring market Education sales revenues and projected growth 2011 - 2015 Investment in disruptive new services or bundled offerings (Data forthcoming from client)

19. Enter a soaring market Build our brand Secure our future Seize unparalleled growth and investment opportunity Humanize our brand and resonate deeply with consumers and employees Help build America’s economic health and a skilled employee pipeline Reason #2

20. Build Our Brand “There is no knowledge of C&S efforts or what the company stands for...AT&T’s greatest opportunity to distinguish itself is through it’s commitment to education and learning.” • Heart Research Associates • February 2012

21. Historical Model Future Model BrandStrategy Your world. Delivered. Rethink Possible Purposeful Brand Education Aspire C&S Strategy AT&T Education Brand Trajectory Build Our Brand

22. Build Our Brand Purpose has successfully humanized similar brands...

23. Target: Brand Trajectory Build Our Brand Then Now BrandStrategy Cheap Chic Expect More Purposeful Brand Give More Philanthropy “Giving $1 billion for education and bright futures by 2015.” C&S Strategy

24. Pepsi: Brand Trajectory Build Our Brand Then Now BrandStrategy Something for Everyone Refresh Everything Purposeful Brand Pepsi Refresh C&S Strategy “1.4 million lives improved. 189 schools refreshed. 1,000 grants rewarded.” C&S Strategy

25. Walmart: Brand Trajectory Build Our Brand Then Now BrandStrategy Low Prices Live Better Purposeful Brand Sustainability Sustainability “Helping people save money while they help their families, and the world, live better.” C&S Strategy

26. Education resonates Build Our Brand “We will never stop developing groundbreaking technological advancements and meaningful solutions that unlock the potential in all of us—and expand what humanity is capable of. It’s what drives our curious, open, inventive and purposeful brand—and gives us our creative resolve.Let’s bring tomorrow closer. Let’s invent for people’s sake. Let’s shake things upward…And create the world we imagine.” – AT&T brand center

27. Enter a soaring market Build our brand Secure our future Seize unparalleled growth and investment opportunity Humanize our brand and resonate deeply with consumers and employees Help build America’s economic health and a skilled employee pipeline Reason #3

28. Secure Our Future “Subpar public schools threaten recruiting… Jobs go unfilled even amid high unemployment in positions requiring scientific and high- technology expertise.” • US Public Education Taskforce • January 2012

29. More investment = more growth Secure Our Future Broadening our customer base and employee pipeline: 77% of jobs will require technology skills in the next decade An extra year of school is associated with more than a 30 percent increase in per capita income

30. Why AT&T?

31. We are uniquely positioned to lead Heritage and history in education Alignment with current brand positioning A brand embedded in our lives (ubiquitous) Mobile and technology leadership: Network: LTE Platforms Mobile/wireless business

32. As a company we stand for what’s needed in education Exponential change and innovation Game-changing approaches Human potential Optimism

33. How does AT&T enter a highly competitive marketplace?

34. Market Analysis

35. The education space is crowded

36. There are corporate supporters

37. And disruptive innovators

38. Disruptive innovators liberate education, playing to people’s thirst for knowledge. Provides free online learning videos in an informal and individualized format; viewed by up to 3.5 million people each month Pairs extraordinary educators with talented animators to produce a new library of exceptional educational videos to ignite curiosity worldwide same as previous requests / consistencies left jsutify font an AT&T font? Provides public access to a Harvard and MIT education through free online courses, building a global community of learners Offers the first ever complete online game based high school course (in association with Florida Virtual School)

39. Corporate leaders bring new models to scale, leveraging their reach and proprietary assets. Builds demand for its platforms through partnerships, open sourcing and contests that generate grassroots momentum and meaningful solutions Uses its huge network to level the playing field for students around the world, offering “the world’s largest classroom.” Puts education technology in the hands of students, teachers and citizens worldwide. Works with governments to make technology more accessible Provides classroom tools and apps, such as Google docs, that enable collaboration and better organize information.

40. What sets corporate strategies apart?

41. + + - - + - + - + Business Value Quick Wins Social Innovation Ad-Hoc Donations Strategic Philanthropy Impact and Scalability Four distinct, yet complementary approaches Quick Wins Quick Wins Social Innovation Ad-Hoc Donations Strategic Philanthropy

42. + + - - - + + - Quick Wins Social Innovation Business Value Innovative solutions that target social problem while building business value Long hanging fruit initiatives that offer significant business value but limited social impact Ad-Hoc Donations Strategic Philanthropy Philanthropic initiatives that lack alignment with broader mission or core competencies Effective, goal-oriented, and socially meaningful philanthropy Impact and Scalability Four distinct, yet complementary approaches Quick Wins Social Innovation Long hanging fruit initiatives that offer significant business value but limited social impact Innovative solutions that target social problem while building business value Business Value Strategic Philanthropy Ad-Hoc Donations Philanthropic initiatives that lack alignment with broader mission or core competencies Effective, goal-oriented, and socially meaningful philanthropy Impact and Scalability 42

43. + + - - - - + + Quick Wins Social Innovation Pro: Leverages core competency Con: Lack of innovation or authenticity Pro: True leadership across business and social metrics Con: Requires appetite to innovate Business Value Ad-Hoc Donations Strategic Philanthropy Pro: “Checks the box” for corporate citizenship Con: Lack of scale or differentiation Pro: Significant social impact an reputational benefit Con: Lack of alignment with core competencies Impact and Scalability Varying degrees of scale and impact Quick Wins Social Innovation Business Value Pro: Leverages core competency Con: Lack of innovation or authenticity Pro: True leadership across business and social metrics Con: Requires appetite to innovate Ad-Hoc Donations Strategic Philanthropy Pro: “Checks the box” for corporate citizenship Con: Lack of scale or differentiation Pro: Significant social impact and reputational benefit Con: Lack of alignment of core competencies Impact and Scalability 43

44. Apple Summary Initiatives generally focus on high market capture areas and building a better product – the value for Apple is significant but the potential for greater social impact is high. Key Activities I-tunes U application, distributing Apple products to schools worldwide Enduring Ideas Creative ways to leverage Apple products to drive education Unique Value Proposition Apple products are highly engaging to students and educators alike, driving motivation and curiosity 44

45. Facebook Summary Single donation made by Mark Zuckerberg with little further disclosure of positioning on education issues Key Activities Single $100M to Newark schools Ongoing information available on how educators can leverage Facebook for learning same with all these pages Enduring Ideas None Unique Value Proposition Social network widely used among students, educators, and parents 45

46. GE Summary Strategic and well-tracked initiatives with a focus on creating a brand halo around community involvement rather than alignment with core business; education is one of many GE philanthropy programs. Key Activities Flagship program is GE Developing Futures in Education program Enduring Ideas A quality education ushers in a lifetime of opportunity, which helps build a strong and diverse citizenry to work and live in an increasingly competitive world Unique Value Proposition A systemic and highly targeted approach to driving up US STEM outcomes 46

47. Microsoft Summary Innovative approaches to delivering measurable results in the education space while increasing penetration of Microsoft products and building the brand Key Activities Broad variety of tools and services to help educators connect with each other, prepare students for tomorrow's careers, and provide learners with increased access to technology and training, including: Imagine Cup, Students to Business, and Partners in Learning Enduring Ideas Allowing people to imagine and realize their full potential through platforms, tools and training that promotes 21st Century skills Unique Value Proposition Microsoft is a brand that is well known to and highly valued in the education space 47

48. What is the right strategy for AT&T?

49. Socially innovative companies AT& T doesn’t like these check boxes, please make orange bullets open up the line spacing consistent type and sizes to previous pages High investment High relevance High involvement High return *See Appendix A for in-depth case studies

50. Socially innovative companies AT& T doesn’t like these check boxes, please make orange bullets open up the line spacing consistent type and sizes to previous pages High investment High relevance High involvement High return *See Appendix A for in-depth case studies