AT&T Readies Its Supply Chain for the Future

New "Domain Supplier" Program Facilitates Introduction of Emerging Technologies While Providing Key Benefits for AT&T and Suppliers

Dallas, Texas, September 4, 2009

newsrelease


AT&T* today announced a major change in the way the company sources new technology for its core network. The company launched its Domain Supplier program to facilitate a more collaborative relationship with its equipment and software suppliers, making certain that AT&T has the best technologies in place to serve its customers.

The new Domain Supplier program also will ensure that the company’s network technology investment accelerates AT&T’s move toward a network that is well-equipped for the future. As a key part of the program, the company has established a number of “domains” – areas of the future network bounded by a particular technology set, such as wireline access.

Each domain will have two suppliers selected and pre-qualified by AT&T. The selected suppliers will work with AT&T to meet the company’s current and future needs, representing a significant opportunity for them to work in that domain for a set multi-year period, though there is no guarantee of any business award. Within each of these domains are target technologies. For example, the wireline access domain includes technologies such as IP/DSLAM and FTTx.

“Customer expectations for network reliability have increased, and they are demanding speed to market for new technologies to satisfy today’s ever-changing landscape,” said Tim Harden, president, Supply Chain and Fleet Operations, AT&T. “We must continually challenge and collaborate with our equipment and software suppliers to improve their quality and step up to a higher level of performance. Our goal is to ensure that each investment in network infrastructure accelerates our move towards a network that enables the full promise of the Internet and other game-changing technologies.”

More specifically, the Domain Supplier program will enable AT&T to:

  • Accelerate spend on future-oriented equipment categories, while reducing expenditures on legacy systems.
  • Achieve competitive cost and highest performance by increasing supplier competition within a domain.
  • Take advantage of the latest technologies and R&D efforts.
  • Focus development on collaboration around system capabilities versus component purchasing.
  • Stay in tune with innovations and the evolving market place.
  • Expand its best-in-class sustainability and supplier diversity programs.

The new domain approach also will benefit suppliers by allowing them to work more closely with AT&T by sharing timelines, project roadmaps and other information and, ultimately, enabling them to more quickly realize revenue due to expedited deployment of their hardware or software. In addition, regardless of the size of the initial business award from AT&T, each supplier within a domain will have an opportunity to expand the award beyond its initial scope.

Suppliers selected for each domain will be responsible for the integration, testing, support and delivery of the complete end-to-end solution for the equipment or software in the domain that they have been awarded. If a selected domain supplier chooses to work with a third party to deliver the technology within their domain, they will be expected to completely integrate, test and support the third party provider’s technology into the end-to-end solution.

“The Domain Supplier program will facilitate a more collaborative relationship with our network technology suppliers,” Harden said. “It also enables AT&T to minimize risk to our supply chain, improve supplier performance, and increase the speed of introduction of new products and services while offering AT&T the best technologies to serve our customers.”

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

** No purchase necessary. Standard text messaging applies.

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. With a powerful array of network resources that includes the nation’s fastest 3G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. AT&T offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verseSM and AT&T | DIRECTVSM brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T’s Yellow Pages and YELLOWPAGES.COM organizations are known for their leadership in directory publishing and advertising sales. In 2009, AT&T again ranked No. 1 in the telecommunications industry on FORTUNE® magazine’s list of the World’s Most Admired Companies. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

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