CWAGJuly 11, 2011

New Connections for a Digital LifeTammi TerrellVice President-General ManagerSan Diego, Las Vegas, Hawaii – AT&T

Where did we come from?

2

• A new concept for Mobility in communications• Communications extend to the car• The cell phone becomes personal• National plans (no roaming), free nights and

weekends, rollover minutes• Explosion in texting, email, and MMS• Smartphones - vertically integrated with apps

Hyper-Competition + Technology = Innovation and Value

3 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

The Industry is Changing Dramatically…

4

1995 2000 2005 2010

The Rapid Changing Face of Wireless

Source: CTIA/Gartner

5

2013

Wireless Industry Penetration

© 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

10

5

2007 2008 2009 2010

0

Petabytes/month

6

2007 2011 2012 2013

100

75

50

150

125

25

2008 2009 2010 2014 2015

0

Petabytes/month

7

AT&T projections

The U.S. leads the World in Mobile Broadband, AT&T leads the U.S.

© 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 8

Mobile BB Subs2010E (millions)

Smartphone Sales 2011E (millions of units)

Application Downloads 2010 (in millions)

The U.S. leads the world in mobile broadband

subscribers

And AT&T leads the U.S.

Source Parks Associates, June 2011

Source: Strategy Analytics, Global Smartphone Sales Forecast by Country, Jan 2011

Strategy Analytics, Feb 2011

The U.S. leads the world in

smartphone sales

And AT&T leads the U.S.

The U.S. leads the world in

application downloads

And AT&T leads the U.S.

So, what is the next big thing?

9

Connected Devices = The Next Big Thing…

10

PNDs

Digital Cameras/ Camcorders

Computing

In-Car,Telematics

Connected Home

eReaders

The AT&T Networks

Wireless + BroadbandWi-Fi + International

Tracking Devices

Picture Frames

Tablets

Healthcare

© 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Gaming Devices

Rapid Growth of Connected Devices

Our vision is that by 2020, we will have 50 billion connected devices

- Ericsson CEO, Mar 2010

There will be 1 trillion devices connected to the Internet by 2013

- Cisco CTO, Mar 2010

20 Billion connected devices by 2020

-telecomseurope.net, Feb 2010

Shipments of connected CE devices are forecasted to grow at a rate of 65.2% (CAGR) to reach 271 million in 2015.

- - Berg Insights, Feb 2011

Machine-to-Machine traffic to increase 40-fold between 2010 and 2015

-- Cisco VNI Mobile Forecast, Feb 2011

11 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

What trends do we see coming in this space?

12

Trends in Emerging Devices

13 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Integration Empowered by the Smart Device…

Tracking Devices• Track what’s important

• Monitor vital stats

• Use geofence parameters

Picture Frames• Share memories asthey happen

• Manage control remotely

Healthcare• Dosage reminders – text or voice

• Family alerts to ensure adherence

• Track adherence over time

eReaders• Purchase content anywhere

• Share content across devices

• Optimize reading experience

Trends in Emerging Devices

14 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Extending connectivity to the car…

Tethered Solutions• Leverage content & apps from smartphone

• Streaming audio & video

• Access to web, cloud for entertainment

Embedded Solutions• Engine, system diagnostics

• Auto crash notification

• Stolen vehicle assistance

• Navigation, local search

• Emergency voice calls

• Remote Unlock, Remote Start

• Real-time traffic, weather, parking

• State of charge & Pre-Conditioning for EVs

Trends in Emerging Devices

15 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Synching it all up with the home…

Home Automation• Moisture Sensing, Water Shut Off• Temperature Control• Garage Open/Close• Lights On/Off/Dim• WiFi Touch Pad• IP Cameras

Synchronization• The home becomes the hub of personal data• Access via any web-enabled device• Share content across all connected devices• Transition experiences between devices

How Do We Get There?

16

Sustained Investment: $19 Billion committed to build out AT&T networks in 2011

Accelerated LTE deployment planned to be largely complete by end of 2013

With merger, AT&T can commit to cover 97% of all Americans with LTE

Building the Nation’s Most Advanced Mobile Broadband Experience

© 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 17

18 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Demand is exploding

Innovation is soaring

Consumers will benefit

Increased capacity is critical to growth

Thank You!

New Connections for a Digital LifeTammi TerrellVice President-General ManagerSan Diego, Las Vegas, Hawaii – AT&T