AT&T expanding in China

News
Apr 25, 20052 mins

AT&T has been expanding its international reach these past six months – especially in China.

In fact, the carrier now says it has a broader reach in China than any other international service provider.

AT&T has built out its Multi-protocol Label Switching (MPLS) network by deploying switches and teaming with service providers in China. Last year AT&T had one MPLS switch in Shanghai through its joint venture Unisiti, in which Shanghai Telecom holds a 60% share, AT&T holds a 25% share and Shanghai Information Investments holds a 15% share.

While AT&T touts its status as the lone foreign service provider to have a telecom joint venture in China, that relationship is limited. The Unisiti business license is limited to Shanghai’s Pudong business district, which AT&T says is equivalent in size to Manhattan. But the joint venture lets AT&T directly work with customers in that area providing MPLS and other data services.

Throughout 2004, AT&T deployed additional MPLS nodes in Beijing, Shanghai and Guangzhou in southern China.

Five months ago, the carrier also struck up agreements with China Telecom and China Netcom to reach 60 cities throughout China. AT&T has network-to-network interfaces (NNI) with both providers.

Before AT&T set up the NNIs with China Telecom and China Netcom, customers would have to use domestic, long-haul connectivity to reach AT&T nodes in Beijing, Shanghai and Guangzhou. Now customers have more direct access.

“In some countries it’s more efficient to go through local carriers,” says Rose Klimovich, vice president and general manager of VPN and integrated network services at AT&T.