AT&T's $1B Repeat

2:30 PM Business Solutions division gets $1B again

April 6, 2010

2 Min Read
AT&T's $1B Repeat

2:30 PM -- Is AT&T Inc. (NYSE: T) stuck in a capex rut?

The carrier today announced plans to invest $1 billion in its network infrastructure and applications that support its Global Solutions division, which serves enterprise users around the world, as well as small business users in the US. (See AT&T to Spend $1B on Biz Service Upgrades.)

That sounds remarkably similar to the pledge made a year ago: $1 billion seems to be the set spend for this part of 'Ma Bell.' (See AT&T Plans $1B Global Spend.)

Er, and in 2008, too. (See AT&T's $1B Global Capex Pledge.)

What's different this year, though, is that AT&T's overall capex has gone up, to $18 billion–19 billion from about $17.3 billion in 2009, so the Global Solutions business is getting a smaller piece of the overall pie. As we know, though, it's the operator's domestic mobile network that's soaking up with increased spending. (See AT&T to Spend $2B More on Wireless in 2010.)

So what's AT&T planning to invest in during 2010? A raft of upgrades to support mobile connectivity, cloud services, and content distribution, including some particular investments that will interest its customers in Europe, including:

  • IPV6-capable MPLS nodes "to support Layer 3 VPN and Global Managed Internet Services, including gigabit Ethernet customer access," in Belgium, France, Germany, Hungary, Netherlands, Portugal, Romania, Russia, Spain, and Sweden. That's a topical subject. (See Too Many Not Ready for IPv6, Lab Warns.)

  • A new data center in London.

  • TelePresence rooms in Brussels, Redditch (U.K.), and the Slovakian cities of Bratislava and Kosice.

  • Enhanced capacity, a full 70 Gbit/s, on AT&T's transatlantic subsea routes.

— Ray Le Maistre, International Managing Editor, Light Reading

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