AT&T Wins Global Networking Contract Worth Nearly $1 Billion From General Motors
AT&T Named Strategic Information Technology Supplier for Next-Generation Telecommunications Services
Network Supports GM's Drive to Integrate and Leverage Global Resources
Detroit, Michigan, February 21, 2007
AT&T Inc. (NYSE: T) today announced that General Motors Corp. (NYSE: GM) has awarded AT&T a five-year global networking contract worth nearly $1 billion. The agreement is one of the largest commercial contracts in AT&T history.
Under the agreement, AT&T will deliver next-generation telecommunications capabilities that will enable GM to further integrate its global resources. In addition, GM named AT&T a strategic information technology supplier to support its third-generation information technology business model, which is designed to ensure that GM's IT suppliers are working as one around the world. In that role, AT&T will provide network-integration management covering all aspects of GM's worldwide telecommunications infrastructure, including voice and data applications and systems support.
As part of the agreement, AT&T will be responsible for managing the performance of key regional telecommunications providers around the world in addition to network management responsibility for participating telephone companies to drive consistent, uniform IT service delivery and support. In addition, AT&T will continue to collaborate with GM's Information Systems and Services organization to support its global business strategy.
The contract renews and expands an existing strategic global relationship in which AT&T provides GM with a global Virtual Private Network (VPN) solution, integrating GM locations around the world. AT&T's solution supports a full range of capabilities including local, long distance, global voice mail, conferencing, high speed Internet access and telecommunications business-continuity services.
The network, based on Multiprotocol Label Switching (MPLS) technology, provides a standardized technology infrastructure that will enable GM to integrate networks, applications and devices and to evolve into a single streamlined, communications platform based on Internet Protocol (IP) with consistent standards and capabilities. As a result, employees across the enterprise will have the same telecommunications tools, such as common voice mail and conferencing capabilities, and will enjoy the same quality of service whether they're sitting in the corporate headquarters in Detroit or in a manufacturing facility in Australia.
"AT&T's networking expertise and global reach make it uniquely qualified to meet the telecommunications needs of a global, multinational company like ours," said Ralph Szygenda, group vice president and chief information officer of General Motors. "This agreement is a strategic step toward strengthening telecommunications across our global enterprise. It ensures that we have the basic infrastructure in place to give GM employees anywhere in the world the ability to collaborate online in real time on engineering, manufacturing, design and supply-chain. It is expected to enable increased productivity and collaboration and to maximize GM's global network.
"GM's vision for global integration using an IP-based technology platform and uniform service standards around the world managed by trusted technology partners is a bellwether for multinational corporations," said Ron Spears, executive vice president of AT&T Global Business Sales. "We are excited to be a strategic information technology supplier to GM and are anxious to deliver the benefits of next-generation telecommunications services."
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About General Motors
General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 76 years. Founded in 1908, GM today employs about 284,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.
AT&T Inc. is a premier communications holding company in the United States and around the world, with operating subsidiaries providing services under the AT&T brand. AT&T is the recognized world leader in providing IP-based communications services to businesses and the U.S. leader in providing wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising through its Yellow Pages and YELLOWPAGES.COM organizations. As part of its three-screen integration strategy, AT&T is expanding video entertainment offerings to include such next-generation television services as AT&T U-verseSM TV. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.
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