AT&T To Spend $1 Billion To Increase Network Capacity - InformationWeek

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AT&T To Spend $1 Billion To Increase Network Capacity

The planned investment is 33% more than last year and more than double AT&T's investment in 2006.

AT&T on Wednesday said it would invest $1 billion this year on its Internet Protocol network and services to meet multinational companies' increasing need for more capacity to handle data, voice, and video traffic.

The planned investment is 33% more than last year and more than double AT&T's investment in 2006, the company said. The spending boost is expected to speed up AT&T's efforts to extend the reach and capacity of its global network and portfolio of business services.

Throughout the year, AT&T plans to increase undersea fiber-optic capacity to Japan and Asia, including upgrading existing cables servicing India and the Middle East. In addition, the company plans new network-to-network connections to extend its reach into high-growth markets, such as India, Australia, Eastern Europe, Russia, and South America.

AT&T also plans to invest in rolling out improved technologies for building local area networks. The enhanced services are expected to be available in 39 countries, including the United States and European and Asia-Pacific countries, by the end of the year.

The telecommunications company also plans to add DSL as a broadband option for customers in China, Finland, Norway, and Saudi Arabia, increasing to 21 the number of countries where DSL is available. To increase data center hosting capacity, the company will add a total of 180,000 square feet by mid-2009 throughout AT&T's 38 data centers worldwide.

Finally, AT&T plans to offer IP-based audio-conferencing services with in-country dial-in access from more than 140 countries. In addition, the company would offer in-language support.

"Companies worldwide are responding to the exploding need to deliver voice, data, and video in real time to their end-users, no matter where they are, no matter what the device," Ron Spears, president of AT&T Global Business Services, said in a statement. "It is vital that we continue to invest in those geographies and services to meet this demand so our customers can connect their operations, partners, and suppliers."

AT&T has said it expects 2008 revenue growth in the mid-single-digit percentage range. The company in 2007 reported revenue of $118.9 billion.

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