AT&T- News Room

AT&T Selects Vendors for U-verse G-PON Fiber Deployment in New Residential Construction Areas

New-Generation Gigabit Passive Optical Network (G-PON) Equipment from Alcatel-Lucent, Ericsson Will Be Used in "New Build" Neighborhoods across AT&T's Local Telecommunications Footprint

San Antonio, Texas, June 15, 2007

AT&T Inc. (NYSE: T) today announced that Alcatel-Lucent (Euronext Paris and NYSE:ALU) and Ericsson (NASDAQ:ERIC) have been selected to provide equipment for the planned deployment of Gigabit Passive Optical Network (G-PON) in "new build" areas of AT&T affiliates' local service territories as part of the overall U-verse^SM network strategy. Financial terms of the awards were not disclosed.

G-PON is the newest standard for fiber-to-the-home technology, with capacity to deliver greater speeds than current-generation Broadband Passive Optical Network (B-PON) technology.

With its U-verse strategy, AT&T is deploying fiber-to-the-home technology, including PON, in new-build residential areas throughout the local telecommunications service territories and will deploy a fiber-to-the-node network infrastructure in existing neighborhoods. Both of these network infrastructures enable delivery of the U-verse portfolio of IP-based services.

AT&T U-verse offers customers a combination of next-generation digital television — including access to more than 25 High Definition (HD) channels — and high-speed Internet access. The award-winning AT&T U-verse TV includes cutting-edge features that are unmatched in the market, while the new U-verse enabled AT&T Yahoo!^® High Speed Internet builds on AT&T's position as the nation's leading provider of broadband DSL.

The Alcatel-Lucent and Ericsson G-PON solutions consist of several passive-optical-network-based elements, including equipment for the central office and home terminals. Both suppliers will soon begin lab testing and certification by AT&T Labs prior to field testing, which will include configurations for general deployment in single-family residences, apartment and condominium complexes. Pending successful resolution of testing and certification, general deployment of G-PON is expected to begin in 2008.

This AT&T news release and other announcements are available as part of an RSS feed at www.att.com/rss.

About AT&T
AT&T Inc. (NYSE: T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.