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SBC Media Briefing

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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. - PowerPoint PPT Presentation
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Page 1: SBC Media Briefing
Page 2: SBC Media Briefing

SBC Media Briefing

Media UpdateMay 9, 2001

Ross IrelandSenior Executive Vice President,Chief Technical Officer

Abha DivineVice President – Corporate Strategy

Page 3: SBC Media Briefing

our strategymeeting our customers where

they are

Page 4: SBC Media Briefing

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

Page 5: SBC Media Briefing

LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11

MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11

MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11

PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02

PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12

SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02

SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12

SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14

SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21

SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01

SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11

SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01

SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11

MFS SWITCHMFS SWITCHMFS SWITCHMFS SWITCHMFS SWITCHMFS SWITCHMFS SWITCHMFS SWITCHMFS SWITCH

San FranciscoSan FranciscoBayBay

Competitor A’s Switch

Competitor A’s Switch Location

Competitor A’sFiber SBC’sCentral Offices

SBC’sWire Center Boundaries

Silicon Valley

Competitor A’s Fiber Network

Page 6: SBC Media Briefing

San FranciscoSan FranciscoBayBay

Competitor A’s Switch

Competitor B’s Switch Location

Competitor B’sFiber SBC’sCentral Offices

SBC’sWire Center Boundaries

Silicon Valley

LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11

MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11

MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11

PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02

PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12

SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02

SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12

SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14

SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21

SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01

SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11

SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01

SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11

BROOKS SWITCHBROOKS SWITCHBROOKS SWITCHBROOKS SWITCHBROOKS SWITCHBROOKS SWITCHBROOKS SWITCHBROOKS SWITCHBROOKS SWITCH

San FranciscoSan FranciscoBayBay

Competitor B’s Switch

Competitor B’s Fiber Network

Page 7: SBC Media Briefing

San FranciscoSan FranciscoBayBay

Competitor A’s Switch

SBC’s Central Office

SBC’s Loop Fiber SBC’s Inter-OfficeFiber

SBC’sWire Center Boundaries

Silicon Valley

San FranciscoSan FranciscoBayBay

Competitor A’s Switch

HW

Y 92

HW

Y 92

HW

Y 92

HW

Y 92

HW

Y 92

HW

Y 92

HW

Y 92

HW

Y 92

HW

Y 92

HW

Y 85

HW

Y 85

HW

Y 85

HW

Y 85

HW

Y 85

HW

Y 85

HW

Y 85

HW

Y 85

HW

Y 85

LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11LSATCA11

MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11MLPSCA11

MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11MTVWCA11

PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02PLALCA02

PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12PLALCA12

SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02SNJSCA02

SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12SNJSCA12

SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14SNJSCA14

SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21SNJSCA21

SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01SNTCCA01

SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11SNTCCA11

SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01SNVACA01

SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11SNVACA11

San FranciscoSan FranciscoBayBay

SBC’s Fiber Network

Page 8: SBC Media Briefing

Fiber to the Neighborhood …

Central Officeor

Remote Terminal

NeighborhoodGateways

Fiber

Copper

Page 9: SBC Media Briefing

… Then to the Home

Central Officeor

Remote Terminal

WDM allows multiple homes or businesses

to be served by a single fiber connection

Splitter is the size of abubble gum pack

Requires no remote power source

Homes and businessesreceive virtuallyunlimitedbandwidth

32-38 homesor 12 businesses

Splitters

Page 10: SBC Media Briefing

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

Page 11: SBC Media Briefing

DSL Deployment

0 0 0000 3 01, 0

Central Offices

90 percent of total Pronto target

Page 12: SBC Media Briefing

DSL Deployment

0 0 0000 0 03, 0

Neighborhood Gateways

17,000 projected by 2003

Page 13: SBC Media Briefing

DSL Deployment

0 0 0000 0 04, 0

DSL Subscribers

SBC is the nation’s largest DSL provider

59

Page 14: SBC Media Briefing

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

Page 15: SBC Media Briefing

SBC’s visionBe the only communications company our customers will ever need

Page 16: SBC Media Briefing

Building Solutions

ACCESSACCESS

NETWORKNETWORK

Page 17: SBC Media Briefing

Network

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

ACCESSACCESS

NETWORKNETWORK

Page 18: SBC Media Briefing

SBC IP Backbone Traffic

by Product

6,92118,583

47,030

86,892

137,127

185,832

0

50,000

100,000

150,000

200,000

2000 2001 2002 2003 2004 2005

Wireless DSL Dial <T1 T3+ IDC

Mbps

Page 19: SBC Media Briefing

SBC DSL customer baseEOY 2000SBC DSL customer baseEOY 2000

“ Sweet Spot”

IP Backbone Cost Curve

$200

$450

$700

$950

$1,200

$1,450

$1,700

$1,950

$2,20050

100

250

500

1,00

0

1,50

0

2,00

0

2,50

0

3,00

0

3,50

0

4,00

0

4,50

0

5,00

0

5,50

0

6,00

0

8,00

0

10,0

00

Number of DSL Subscribers (000)

5 Y

r. W

A C

ost

Per

Mb

ps.

Page 20: SBC Media Briefing

IP Backbone Buildout

Page 21: SBC Media Briefing

Benefits of Our Approach Efficiently handles IP traffic

growth Service level agreements (SLAs) Differentiated products and

time frame Satisfies need for native

transport

Page 22: SBC Media Briefing

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

Building Solutions

Page 23: SBC Media Briefing

Hosting

Key to enabling customers to capitalize on our network and access

Ensures reliable, always-on Internet presence

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

Page 24: SBC Media Briefing

Hosting: Data Centers

$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

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

Page 25: SBC Media Briefing

Hosting Services

Dedicated Shared Collocation Internet data centers

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

Page 26: SBC Media Briefing

Hosting Market Growth

Source: Forrester, 1999. Yankee Group, 1999. SBC region based on 41% of U.S.

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2000 2001 2002 2003

ManagedCAGR 96%

Hosted AppsCAGR 41%

CollocationCAGR 51%

SharedCAGR 23%

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

Page 27: SBC Media Briefing

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

Building Solutions

Page 28: SBC Media Briefing

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTINGApplications

Advanced services that add functionality to Web sites and networks

A platform for ASP services The fastest, most reliable path

from customer to content

APPLICATIONSAPPLICATIONS

Page 29: SBC Media Briefing

Fiber or DSLbroadband connection

Home or business

SBC Data/IPNetwork

Hosted Content

at SBC IDC

InternetContent

“Best effort” architecture of Internet: speeds can vary

End-to-end accessthrough SBC’s network

Faster, more reliablebandwidth

CorporateNetwork ore-businessNetwork

Broadband Solutions: The Ideal Platform

Page 30: SBC Media Briefing

SBC Content Navigator

SBC BroadbandSBC Broadband

Page 31: SBC Media Briefing

SBC Content Navigator

SBC BroadbandSBC Broadband

Page 32: SBC Media Briefing

Applications

SBC is introducing applications through its subsidiary, Sterling Commerce, one of the world’s leading e-business application providers

Sterlingcommerce.net Sterling eTransaction Manager

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

Page 33: SBC Media Briefing

Ecommerce Endgame: From Convoluted …

Page 34: SBC Media Briefing

… To Convenient and Cost-Effective

Page 35: SBC Media Briefing

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

CO

NS

UL

TIN

GC

ON

SU

LT

ING

INT

EG

RA

TIO

NIN

TE

GR

AT

ION

MA

NA

GE

ME

NT

MA

NA

GE

ME

NT

Building Solutions

Page 36: SBC Media Briefing

Consulting, Integration and Management 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

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

CO

NS

UL

TIN

GC

ON

SU

LT

ING

INT

EG

RA

TIO

NIN

TE

GR

AT

ION

MA

NA

GE

ME

NT

MA

NA

GE

ME

NT

Page 37: SBC Media Briefing

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

SOLUTIONSSOLUTIONS

CO

NS

UL

TIN

GC

ON

SU

LT

ING

INT

EG

RA

TIO

NIN

TE

GR

AT

ION

MA

NA

GE

ME

NT

MA

NA

GE

ME

NT

Building Solutions

Page 38: SBC Media Briefing

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

CO

NS

UL

TIN

GC

ON

SU

LT

ING

INT

EG

RA

TIO

NIN

TE

GR

AT

ION

MA

NA

GE

ME

NT

MA

NA

GE

ME

NT

The End Result

solutionsProducts and services combined and customized to meet specific needs of businesses or industries

SOLUTIONSSOLUTIONS

Page 39: SBC Media Briefing

Customer Solutions

HIPAA Daunting challenge

for health care and insurance companies

SBC solution combines consulting and integration expertise with networking applications

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

SOLUTIONSSOLUTIONS

CO

NS

UL

TIN

GC

ON

SU

LT

ING

INT

EG

RA

TIO

NIN

TE

GR

AT

ION

MA

NA

GE

ME

NT

MA

NA

GE

ME

NT

Page 40: SBC Media Briefing

Customer Solutions

HIPAA Daunting challenge

for health care and insurance companies

SBC solution combines consulting and integration expertise with networking applications

ANX Automotive suppliers

need high-speed access to Big threee-commerce network

SBC solution combines high-speed access with e-commerce application and integration

ACCESSACCESS

NETWORKNETWORK

HOSTINGHOSTING

APPLICATIONSAPPLICATIONS

SOLUTIONSSOLUTIONS

CO

NS

UL

TIN

GC

ON

SU

LT

ING

INT

EG

RA

TIO

NIN

TE

GR

AT

ION

MA

NA

GE

ME

NT

MA

NA

GE

ME

NT

Page 41: SBC Media Briefing

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