Transcript Network
SBC Media Briefing Media Update May 9, 2001 Ross Ireland Senior Executive Vice President, Chief Technical Officer Abha Divine Vice President – Corporate Strategy our strategy meeting our customers where they are SBC’s Fiber Access Deployment Direct fiber connections bring nearly unlimited bandwidth PON and WDM make deployment efficient and cost effective PON: Fiber to multiple customers without intermediary electronics WDM: Signals as different colors of light on the same fiber Competitor A’s Fiber Network Silicon Valley San Francisco Bay Competitor A’s Switch Location HW HW HWY Y84 HW HW HW 84 Y 84 Y Y 84 84 Competitor A’s Fiber PLALCA02 PLALCA02 PLALCA02 M M MLPSCA11 LPSCA11 LPSCA11 23 237 77 77 7 23 YYY Y23 23 W WY W H H HW W H H H PLALCA12 PLALCA12 PLALCA12 SBC’s Central Offices SNVACA11 SNVACA11 SNVACA11 M M MTVWCA11 TVWCA11 TVWCA11 SNJSCA21 SNJSCA21 SNJSCA21 888000000 IIIIII6666688 85 YY85 85 HW HW HW 85 HW HW HWYYY85 SNVACA01 SNVACA01 SNVACA01 A’s Switch SWITCH M M MFS FS FS SWITCH SWITCH SNTCCA01 SNTCCA01 SNTCCA01 IIIIII88888888888000 Competitor LSATCA11 LSATCA11 LSATCA11 SBC’s Wire Center Boundaries HHHW WYY W W W YYY88888822 222 SNTCCA11 SNTCCA11 SNTCCA11 IIIIII22288800 888000 SNJSCA02 SNJSCA02 SNJSCA02 35 35 35 Y Y35 HW HW HW 35 35 HW HW HWY SNJSCA12 SNJSCA12 SNJSCA12 SNJSCA14 SNJSCA14 SNJSCA14 Competitor B’s Fiber Network Silicon Valley San Francisco Francisco San Bay Bay Competitor B’s Switch Location HW HW HWY HW HW HW 84 84 Y Y84 84 84 84 Competitor B’s Fiber PLALCA02 PLALCA02 PLALCA02 M M MLPSCA11 LPSCA11 LPSCA11 777 7 23 237 23 YYY Y23 23 W WY W W H H HW PLALCA12 PLALCA12 PLALCA12 SBC’s Central Offices SNVACA11 SNVACA11 SNVACA11 M M MTVWCA11 TVWCA11 TVWCA11 YY85 85 85 HW HW HW HW HW HWYYY SNVACA01 SNVACA01 SNVACA01 SWITCH BROOKS BROOKS BROOKS SWITCH SWITCH SNTCCA01 SNTCCA01 SNTCCA01 SNJSCA21 SNJSCA21 SNJSCA21 88800000 IIIIII66666888 LSATCA11 LSATCA11 LSATCA11 00 IIIIII888888888000 Competitor A’s Switch Competitor B’s Switch SBC’s Wire Center Boundaries H HH HH HW W WYY W W YYY888888222 222 SNTCCA11 SNTCCA11 SNTCCA11 IIIIII22288800 88000 SNJSCA02 SNJSCA02 SNJSCA02 35 35 Y Y35 HW HW HW HW HW HWY SNJSCA12 SNJSCA12 SNJSCA12 SNJSCA14 SNJSCA14 SNJSCA14 2223333388 888 SBC’s Fiber Network 444 YYY Y88844 W W WY H H H W W H H HW Silicon Valley San Francisco FranciscoSan Francisco San Bay Bay Bay SBC’s Central Office PLALCA02 PLALCA02 MLPSCA11 MLPSCA11 777 7 223337 Y Y W WY Y Y Y22233 W H H HW W H H H PLALCA12 PLALCA12 SNVACA11 SNVACA11 Competitor A’s Switch MTVWCA11 MTVWCA11 SNJSCA21 SNJSCA21 LSATCA11 LSATCA11 85 85 HW HW HWY 85 85 YYY Y85 HW HW HW SNVACA01 SNVACA01 SBC’s Inter-Office Fiber SNTCCA01 SNTCCA01 SBC’s Wire Center Boundaries SNTCCA11 SNTCCA11 SNJSCA02 SNJSCA02 SNJSCA12 SNJSCA12 SBC’s Loop Fiber Fiber to the Neighborhood … Central Office or Remote Terminal Neighborhood Gateways Fiber Copper … Then to the Home Requires no remote power source Central Office or Remote Terminal Homes and businesses receive virtually unlimited bandwidth Splitters 32-38 homes or 12 businesses WDM allows multiple homes or businesses to be served by a single fiber connection Splitter is the size of a bubble gum pack Access SBC’s core data strength High-speed access technologies form the foundation for all advanced services Leased lines ATM, frame relay, gigabit ethernet Optical connections DSL DSL Deployment Central Offices 0 0 1, 0 03 90 percent of total Pronto target 0 0 DSL Deployment Neighborhood Gateways 0 0 3, 0 0 17,000 projected by 2003 0 0 DSL Deployment DSL Subscribers 90 05 4, 0 0 0 0 SBC is the nation’s largest DSL provider Project Pronto: The Next Phase Broadband platform for 10-20 years Enhanced scalability for DSL Fiber for more businesses Enhanced reliability “Future-proof” architecture Supports an array of advanced services SBC’s vision Be the only communications company our customers will ever need Building Solutions NETWORK ACCESS Network NETWORK ACCESS SBC’s network is the backbone transport for all voice and data traffic Switched ATM IP Business networks allow workers to share information throughout an enterprise LANs and WANs Virtual private networks Managed services SBC IP Backbone Traffic by Product 185,832 200,000 137,127 Mbps 150,000 86,892 100,000 47,030 50,000 6,921 18,583 0 2000 2001 Wireless 2002 DSL 2003 Dial <T1 2004 T3+ 2005 IDC IP Backbone Cost Curve $1,950 “ Sweet Spot” $1,700 $1,450 $1,200 $950 SBC DSL customer base EOY 2000 $700 $450 Number of DSL Subscribers (000) 10,000 8,000 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 250 100 $200 50 5 Yr. WA Cost Per Mbps. $2,200 IP Backbone Buildout Benefits of Our Approach Efficiently handles IP traffic growth Service level agreements (SLAs) Differentiated products and time frame Satisfies need for native transport Building Solutions HOSTING NETWORK ACCESS Hosting HOSTING NETWORK ACCESS Key to enabling customers to capitalize on our network and access Ensures reliable, always-on Internet presence Hosting: Data Centers HOSTING NETWORK ACCESS $50 million facilities in Dallas, Irvine Powered by Cisco equipment Multiple DS3 Internet connections Redundant power Fire suppression and environmental controls 24-7 monitoring Infrastructure services Hosting Services HOSTING NETWORK ACCESS Dedicated Shared Collocation Internet data centers Hosting Market Growth HOSTING NETWORK ACCESS 7,000 6,000 Managed CAGR 96% 5,000 Hosted Apps CAGR 41% 4,000 3,000 Collocation CAGR 51% 2,000 1,000 Shared CAGR 23% 0 2000 2001 2002 2003 Source: Forrester, 1999. Yankee Group, 1999. SBC region based on 41% of U.S. Building Solutions APPLICATIONS HOSTING NETWORK ACCESS Applications APPLICATIONS HOSTING NETWORK ACCESS Advanced services that add functionality to Web sites and networks A platform for ASP services The fastest, most reliable path from customer to content Broadband Solutions: The Ideal Platform Hosted Content at SBC IDC Faster, more reliable bandwidth Home or business Fiber or DSL broadband connection End-to-end access through SBC’s network Corporate Network or e-business Network SBC Data/IP Network Internet Content “Best effort” architecture of Internet: speeds can vary SBC Content Navigator SBC Broadband SBC Content Navigator SBC Broadband Applications APPLICATIONS HOSTING NETWORK ACCESS SBC is introducing applications through its subsidiary, Sterling Commerce, one of the world’s leading e-business application providers Sterlingcommerce.net Sterling eTransaction Manager Ecommerce Endgame: From Convoluted … … To Convenient and Cost-Effective NETWORK ACCESS MANAGEMENT HOSTING INTEGRATION APPLICATIONS CONSULTING Building Solutions These offerings help businesses identify the options that best suit their needs, and making sure that all services work together to maximize benefit and performance Management consulting Process integration Network integration MANAGEMENT HOSTING NETWORK ACCESS INTEGRATION APPLICATIONS CONSULTING Consulting, Integration and Management HOSTING NETWORK ACCESS INTEGRATION APPLICATIONS CONSULTING SOLUTIONS MANAGEMENT Building Solutions solutions Products and services combined and customized to meet specific needs of businesses or industries MANAGEMENT HOSTING NETWORK ACCESS INTEGRATION APPLICATIONS CONSULTING The End Result SOLUTIONS HIPAA Daunting challenge for health care and insurance companies SBC solution combines consulting and integration expertise with networking applications MANAGEMENT HOSTING NETWORK ACCESS INTEGRATION APPLICATIONS CONSULTING Customer Solutions SOLUTIONS HIPAA ANX Daunting challenge for health care and insurance companies Automotive suppliers need high-speed access to Big three e-commerce network SBC solution SBC solution combines consulting combines and integration high-speed access expertise with with e-commerce networking application and applications integration MANAGEMENT HOSTING NETWORK ACCESS INTEGRATION APPLICATIONS CONSULTING Customer Solutions SOLUTIONS