The Next Big Thing

Glenn Lurie
President – Emerging Devices,
Resale & Partnerships (EDRP)

State of the Mobile Net

Wednesday, April 21

© 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
How Did We get Here?
Competition, Value, Technology/Innovation

• National plans with no roaming

• Free nights and weekends
• Free long distance
• Rollover minutes
• Etc., etc., etc. …
The Changing Face of Wireless

Wireless Industry
107%??
Penetration
87%
69%

38%

13%

1995 2000 2005 2008 2013

Source: CTIA/Gartner
Mobile Data Growth at AT&T

AT&T Total Mobile >200%

Broadband Usage in 2009

4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Source: CTIA/Gartner
The History of EDO

Randall Stephenson requested a strategic analysis of

non-phone connected devices by AT&T’s strategy team.
Seeing the “next big thing” and tremendous growth in
wireless data … the Emerging Devices Organization
was formed in October 2008

• Created to bring wireless connectivity to a host of new devices

and applications in the consumer marketplace:
• Deliver game-changing products that leverage all AT&T networks
• Discover tomorrow’s device innovations
• Create a new superior customer experience for these devices
• Create relationships with all in ecosystem
• Develop new business models

• Created to deliver success by building strong partnerships

to launch innovative products in new connected
consumer segments
 Our vision is that by 2020,
Rapid Growth of we will have 50 billion
connected devices
Connected Devices - Ericsson CEO, Mar 2010

There will be 1 trillion

U.S. Per Unit Sales of Wirelessly
Enabled Portable Devices
(in millions)
devices connected to the
Internet by 2013
~86M - Cisco CTO, Mar 2010
20 Billion connected
devices by 2020
- telecomseurope.net, Feb 2010

Non-Handset Devices to
Account for $90 Billion in
Operator Revenue by 2013
~6M - Rethink Wireless, Sep 2008

The total available market for

2008 2009 2010 2011 2012 2013 2014 Internet-connected devices is
Navigation Devices E-Books projected to grow at a 22.3%
Notebooks Media Players compound annual growth
Netbooks MP3 Players rate (CAGR) through 2013.
Mobile Internet Devices Digital Cameras - In-Stat, Nov 2009
Gaming Consoles

*Source: Strategy Analytics, U.S. Connected Device Forecast, Jan. 2010

A New Generation of Connected Devices

eReaders
Picture
Frames

PNDs
Tablets

Computing Tracking
The AT&T Devices
Networks
Wireless + Broadband
In-Car, Wi-Fi + U-verse Gaming
Telematics
Devices

Digital Cameras/
Camcorders Smart Meters

Media Healthcare
Player

8 © 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.
EDO Enables Innovation
Innovating Tracking:
Apisphere

Pet Tracking Collar

• Location-smart animal collar to
help pet owners keep track of
their pooches

• Web & Mobile handset support

via Apisphere award-winning
Geo-Mobility Platform

• Continuously track pet’s movements

with the virtual geo-fence

• Locate Fido on demand if he strays

outside of his established parameters

• Apisphere software will transmit

street level data for easy pet location
Innovating Memories:
Isabella

Vizit Digital Photo Frame

• Two-way, fully interactive digital
photo frame powered by the
AT&T wireless network

• Enables friends and family to send

photos of life’s most important
moments in real-time

• Email a photo to the frame address

and it arrives within minutes

• Vizit users can share, reply, forward,

favorite and delete any image on
the frame

• All photos sent to Vizit are

automatically archived within a
user’s personal VizitMe.com account
Innovating Entertainment and Education:
Zeebo

3G-enabled gaming, education

and entertainment system
• Completely wireless gaming,
entertainment & education platform
• Currently available in Mexico and
Brazil
• Simply plug into television set and
automatically connect to the
ZeeboNet wireless network
• Prevents piracy through fast and
convenient shopping with 3G
broadband wireless connectivity
and over-the-air delivery
• Content delivery and software
updates are completely transparent
to the customer
Innovating Healthcare:
Vitality

GlowCaps – Intelligent Pill Caps

• Provide peace of mind for loved ones,
while addressing the billion-dollar
adherence problem for the healthcare
industry
• Use light then sound reminders, then
a phone call or text message so
people don’t miss a dose
• Adherence data recorded and securely
relayed to Vitality over the AT&T
wireless network
• Sophisticated pattern recognition to
tailor programs to individual needs
• GlowCaps-generated data can be
used to automatically refill
prescriptions
Innovating Media Consumption:
OpenPeak

OpenTabletTM
• Combine communications,
entertainment and home
management capabilities in the home
or on the go
• Social networking, downloading
books, navigation, email and instant
messaging, music, video and photo
sharing
• Energy and home security
management
• OpenPeak App Shop to enable a wide
range of multimedia and home
management applications
Why Choose Us?
Results for Emerging Devices

4th Quarter AT&T Earnings

“AT&T's fourth-quarter subscriber gains also reflect strong

growth in wireless connectivity for emerging devices
including eReaders such as the Amazon Kindle, the Sony
Reader Daily Edition™ and the Barnes & Noble nook.”

“Total emerging devices on AT&T’s wireless network increased

by more than 1 million in the fourth quarter, its strongest
quarter in this category to date, predominantly reflected
in reseller subscriber totals.”
– Rick Lindner, AT&T CFO
Building on Success

A winning team – one-stop shop, a “startup” inside of AT&T

Business model flexibility and alliances

Fastest 3G network; clear path to LTE

#1 in Broadband in the US with 20 million subscribers
#1 in International Coverage with access to data in 192 countries
#1 Largest Wi-Fi Network – 20k in the US, 125k Globally

Best-in-class sales and distribution

The Next Big Thing
Glenn Lurie
President – Emerging Devices,
Resale & Partnerships (EDRP)

Thank you!

© 2010 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.