AT&T expanding reach of networks

AT&T says it is expanding the geographic reach of its IP, frame relay and ATM networks ahead of its original schedule.

The carrier is investing $3 billion this year to feed the growth of its data networks, especially overseas, says Mike Jenner, vice president and general manager of global IP network services at AT&T.

AT&T's frame relay and ATM networks will reach 50 countries by year-end, whereas today they span 30. The company says it originally planned to have frame relay and ATM in 40 countries by year-end.

"It's good that AT&T is expanding globally. [The carrier] is at the top of the list for many multinational customers," says Kate Gerwig, an analyst at Current Analysis. "It's important that [AT&T] continues to expand its own network."

Two years ago AT&T's international strategy was based primarily on partnerships and joint ventures, such as its failed Concert initiative with British Telecom. Expanding its own infrastructure might offer users a more stable choice as many international partnerships have fallen by the wayside, Gerwig says.

Although many multinational organizations view AT&T as a top global provider, it still is playing catch-up from a network coverage standpoint. Equant, Infonet and even MCI (formerly WorldCom) reach more countries via their frame relay networks. But AT&T also is investing more in its global infrastructure than most carriers this year.

MCI says its capital expenditures, which include its network investments, will total $1.2 billion on revenue of about $24 billion for 2003. Equant says its capital expenditures will be $300 million on revenue of about $3 billion for the year.

AT&T also is expanding the reach of its Multi-protocol Label Switching (MPLS) points of presence around the world. AT&T's IP Enabled Frame Relay and IP VPN services are MPLS-based and are provisioned and supported through the carrier's 850 MPLS POPs in 43 countries.

AT&T says it will add 150 MPLS POPs internationally by year-end. Countries where AT&T plans to build include India, Indonesia, Thailand and Romania.

Although the carrier's MPLS POPs span 43 countries it seems the majority of these nodes reside in the North America, where AT&T has offered MPLS-based services for about four years. These offerings are newer to AT&T's multinational customers.

AT&T would not say how many of its 850 MPLS POPs are outside the U.S.

In addition to expanding its network, AT&T also now supports an unmanaged IP VPN service for its international customers. To date, users outside the U.S. could only subscribe to AT&T's fully managed IP VPN service based on MPLS. Now customers can manage those networks in-house, which offers them more control over their routers while also reducing monthly service fees associated with management.

AT&T also now offers IP VPN customers a VPN Integration Consultant who will help customers design a network, AT&T's Jenner says. More customers are looking for guidance on how best to combine legacy networks with a new IP VPN and also integrate process applications such as CRM, he says.