AT&T Extends Network to Malaysia

KUALA LUMPUR -- KLSE-listed VADS Berhad (VADS) today signed an AT&T Global Network (AGN) Cooperation Agreement with AT&T, one of the world's leading providers of data and networking services. Under the agreement, AT&T has appointed VADS as its managed service provider in Malaysia to deliver its portfolio of global managed networking services.

Together with VADS' extensive local network and the AGN, companies in Malaysia can now benefit from the flexibility of any-to-any, secure, reliable and high-speed communications solutions. The newly upgraded Multiprotocol Label Switching (MPLS)-enabled AT&T Global Network connects businesses to about 60 countries worldwide. Meanwhile, VADS also provides 24X7 monitoring and customer support services, backed by an experienced technical and engineering team.

Minister of Energy, Communications and Multimedia YB Datuk Amar Leo Moggie's speech was represented by Yang Berhormat Encik Chia Kwang Chye, Parliament Secretary, Ministry of Energy, Communications and Multimedia, at the signing ceremony between VADS and AT&T.

In reference to the VADS and AT&T cooperation, Datuk Moggie said, "In today's global business environment, it is no longer viable for Malaysian companies to limit their vision within national boundaries. At times, it is possible for us to achieve global standards and capture global business opportunities independently, using our own resources. At other times, we may need to acquire skills or knowledge that others have already developed to complement our own capabilities. In such instances, joint partnerships or cooperative agreements that leverage on each other's strengths are mutually beneficial.

"Today's cooperation agreement between VADS and AT&T is an example of the kind of collaboration Malaysian companies ought to seek with foreign counterparts to enhance both parties' capabilities to serve the market more competitively."

Speaking at the signing ceremony, VADS' Chief Executive Officer, Yusof Ampuan Kechil said, "With more than a decade of experience in delivering managed networking services, we believe that we are in a prime position to take it to the next level. Being appointed as the Service Provider for AT&T's Global Network in Malaysia opens up new opportunities for both VADS and AT&T, and will allow both companies to serve the market with advanced technology and services. We are indeed honoured with the trust and confidence placed on us by AT&T.

"This new collaboration brings synergy and enables VADS to become part of the AT&T Global Network infrastructure, which is a world-class state-of-the-art global network. It complements our flagship service, VADS PREMIER, further extending our reach internationally. VADS PREMIER customers can now take advantage of this enhanced service."

The high-speed connections utilise state-of-the-art MPLS technology, ensuring mission critical and delay-sensitive applications are prioritised and delivered in an efficient and secure manner. Services on this MPLS-enabled network can also be configured to meet different Quality of Service (QoS) specifications, both by applications type and network destination.

"We can now offer customers the same levels of quality, reliability and support in Malaysia as they enjoy in other parts of the world. Using the latest MPLS-enabled technology, customers will have access in Malaysia to a wider AT&T service portfolio and have the flexibility of local or centralised billing," said Mark Fekaris, Vice President of AT&T, Network Engineering and Operations.

"The technology is only part of the story. This agreement further reaffirms our commitment to each other and our customers. AT&T is delighted to cooperate with VADS because they consistently demonstrate a constructive and collaborative approach to problem solving and serving customers with uncompromising excellence," Fekaris said.

Following a US$300 million (RM1.14 billion) investment in the AT&T Global Network and another US$200 million (RM760 million) in the iGEMS suite of network e-management tools in 2002, combined with the rollout of new business services and capabilities, AT&T is reinforcing its position as the industry's leading networking company.

In 2003, AT&T is expected to spend an additional US$700 million* (RM2.66 billion) to significantly improve the customer experience. The company is dramatically simplifying its contracts, slashing provisioning time, improving billing accuracy, and rolling out powerful electronic servicing capabilities. Migrating to a single MPLS-enabled AT&T Global Network is part of its efforts to rationalise operations, offering customers a consistent experience in service levels and applications around the world.

"We have come a long way over the last ten years, we have learnt a lot and we believe that we are now in a prime position to make this collaboration work to the benefit of both VADS and AT&T and most of all to our respective customers. This collaboration will bring more depth in our service levels and more value to our customers here in Malaysia," concluded Yusof.

* The capital component of AT&T's US$500 million investment in customer experience is included in the company's overall plan to spend US$700 million to reduce cycle times and improve processes in 2003, and is included in AT&T's previously announced capital expenditure guidance for the year.

AT&T Corp.