AT&T Completed Acquisition of Edge Wireless

San Antonio, Texas, April 18, 2008

AT&T Inc. (NYSE:T) today announced that the company has completed, through a subsidiary, the acquisition of Edge Wireless. Edge is a provider of wireless communications services in Oregon, northern California, Idaho and Wyoming.

The addition of Edge's wireless network will allow AT&T to deliver broader wireless coverage to customers in the Northwest, including Edge's existing subscribers. Edge customers will also gain access to AT&T's portfolio of products and services, as well as to the nation's largest voice and data network, which covers more than 290 million people.

The two companies have a long-standing relationship as roaming partners, and AT&T expects a smooth customer transition. AT&T will immediately begin to implement a carefully planned process to integrate the AT&T and Edge Wireless networks, combine product portfolios and merge customer care initiatives.

The acquisition of Edge Wireless follows review and approval by the Federal Communications Commission.

Source

AT&T: Internet will hit full capacity by 2010

April 18, 2008 Cnet News: Speaking at a Westminster eForum on Web 2.0 this week in London, Jim Cicconi, vice president of legislative affairs for AT&T, warned that the current systems that constitute the Internet will not be able to cope with the increasing amounts of video and user-generated content being uploaded.

"The surge in online content is at the center of the most dramatic changes affecting the Internet today," he said. "In three years' time, 20 typical households will generate more traffic than the entire Internet today."

Cicconi, who was speaking at the event as part of a wider series of meetings with U.K. government officials, said that at least $55 billion worth of investment was needed in new infrastructure in the next three years in the U.S. alone, with the figure rising to $130 billion to improve the network worldwide. "We are going to be butting up against the physical capacity of the Internet by 2010," he said.

He claimed that the "unprecedented new wave of broadband traffic" would increase 50-fold by 2015 and that AT&T is investing $19 billion to maintain its network and upgrade its backbone network.

Cicconi added that more demand for high-definition video will put an increasing strain on the Internet infrastructure. "Eight hours of video is loaded onto YouTube every minute. Everything will become HD very soon, and HD is 7 to 10 times more bandwidth-hungry than typical video today. Video will be 80 percent of all traffic by 2010, up from 30 percent today," he said.

The AT&T executive pointed out that the Internet exists, thanks to the infrastructure provided by a group of mostly private companies. "There is nothing magic or ethereal about the Internet--it is no more ethereal than the highway system. It is not created by an act of God, but upgraded and maintained by private investors," he said.

Read the article here.