AnalystSummit

AT&T Labs heritage:
1972 – Automatic switching
1976 – S programming language
1983 – AMPS
1995 - Machine learning
2013 – ECOMP
2016 – Project AirGig

To win as a technology company, AT&T strives to be:
- Data-powered
- Alliance-based
- Open-sourced
- Software-defined
- On-Demand
- Automated
- Mobile first
- Virtualized
- TV everywhere
- Highly secure

Our technologies built for a software-centric ecosystem: software-defined, data-powered, technology – highly secured and process efficient – this is the framework that we use

Mobile network demands are changing:

Growing demand: 7x growth in projected global exabytes per month (Cisco VNI)

Shifting device mix: projected % of total global devices – smart phones going from 43% in 2015 to 53% in 2020

Emerging real-time apps: #autonomous cars, #VR, remote #telemedicine

Changes in consumer behavior are impacting data consumption:
20kb -> 350 kb -> 4MB -> 1GB / min #VR experience

New demands require new approaches
Demands: growing demand, shifting device mix, emerging RT apps
Require: speed, capacity, coverage, low latency
Approaches: software, analytics and hyper automation; next-gen connectivity

One example is the growing demand in connected cars: data consumption went up substantially, from 20 kb / km - 1GB / km

Project AirGig: Low-cost, multi-gigabit speeds

Require no direct electrical connection to the power line, can run over a variety of spectrum types, delivers ultra-fast wireless connection to homes, businesses and devices

delivers last-mile access without new FTTH, regenerates mmWave signals through plastic antennas and devices, flexible enough to be configured with small cells or DAS

Reskilling under a new social contract: from participation to people movement

We are in the middle of the skill pivot
45% of technology & operations employees have pivoted
50% reskilled employees are as likely to be hired or promoted
1,250+ reskilled employees hired or promoted in 2016

As part of the re-skilling exercise we are ooperating with Georgia Tech and also creating nano degrees

AirGig – do not need power, does not need to be copper – it’s just the guide for the waveform – it is powered at 60Hz - think of it as electromagnetics over the power grid

AT&T Foundry - 5-year anniversary

.@ATT #Foundry: 6 facilities redefining innovation, 5 years our innovation centers have been in operation, an average of 500 start-ups we meet with annually

Palo Alto (2011) - network transformation, SDN and consumer services
Plano (2011) – business and enterprise services
Israel (2011) – operational efficiency, business process optimization and cybersecurity

Plano (2013) – IoT
Atlanta (2013) – Access, home and connected car
Houston (2016) – Connected healthcare

Rapid prototyping – failing fast

Are we creating a business impact? Are we influencing the culture of the company?

2011-2016: Driving business impact and culture change

Flow Designer
Robotic Process Automation
NumberSync
Drones
CORD
Workplace 2020

Community development

Meet/evaluate ~500 startups/year
SHAPE AT&T Tech Expo
Futurecast: Premier Thought Leadership Series
HostKey Stakeholders:
Business Customers
Policy Decision Makers
Academic Community

TIP – The Innovation Pipeline

Employee crowdsourcing
~130k registered users
37k ideas submitted ~ 2.8m votes
$44m in seed funding

D2ICE - Powering #SDN transformation
Strategically important
Streamline processes
Driving standards
Foster collaboration
Focus on scale

5G:
Planned trials: testing NR aspects, mmWave, cmWave
Indoor/outdoor tests in Middletown and Austin
Limited user tirals this year/early 2017

Leaves on/leaves off/snow/rain – different conditions – to see how that takes place in a real-world setting
Speeds up to 14 Gbps

Industry collaboration:

Vendors: Intel, Ericsson, Nokia
Global collaboration:
China Mobile, Ericsson, Intel, LG, NTT DoCoMo, Samsung, Telstra, DT, Huawei, KDDI, Nokia, Qualcomm, SKTel, Vodafone

#5G Use cases:

Enhanced mobile BB
Massive IoT
Ultra low-latency / high-reliability

Shifting device mix (as per Cisco VNI)

2015
Feature phones: 50%
Smartphones: 43%
IoT: 8%

2020
Feature phones: 21%
Smartphones: 53%
IoT: 26%

IoT’s “killer app” – hi-res camera
Video – worth a thousand sensors

Densification: macro cells, small cells, indoor Wi-Fi (70-80% of the traffic goes through WiFi networks)

Project AirGig
Multi-gigabit, signal external to lines, license-free spectrum, low cost plastic antenna design
It does not send the signal through the conductor – it runs around the wire
It works in various spectrum ranges

Software & analytics
3G/LTE – sw/hw – proprietary/monolithic, hw-centric
LTE/5G – software, open interfaces, commodity hw, open design, modular, software-centric

ECOMP – new network OS

Software centric
Model driven code
Dynamic orchestration
Industry leading
Open for global adoption

Other telcos such as Telefonica have similar initiatives to ECOMP such as OSM, but those do not have a robust production code (OSM = Open Source MANO)

Virtualized functions targets for Domain 2.0
6%: 2015
30%: 2016
75%: 2020

AT&T Labs –
140 year history
8 Nobel Prize heritage
5 patents / day
2200+ scientists and engineers
85% advanced degrees

ECOMP is going to the Linux Foundation – 1Q17

Amdocs – integration partner – to help SPs that do not have the expertise or the resident expertise

Josh went through a customer example for a healthcare company w/ 41 sites:

vCE vFW – Virtualized customer edge in AT&T Integrated Cloud

Challenge: multiple network deployments, unpredictable capacity needs, complex network edge management

Networking models: integrated vs. point solutions
Virtualized edge: multi-function CPE enabled by SDN/NFV
Industry vision: open, standardized, common APIs
User Experience

What we are hearing from customers
Agility + flexibility –on-demand capabilities, one size does not fit all
Scale + value: global scalability, total solution value
Performance + security: end-to-end security

Our platform approach:

Integrated
ECOMP
AT&T Integrated cloud: any payload, anywhere, speed-to-scale, speed to innovate

Momentum with our platform:

Ethernet on demand: 171 metro areas
AT&T FlexWare: 150+ countries
1700+ customer networks
Industry recognition
Investing to expand the platform in 2017

FlexWare:
AT&T managed FlexWare Device –
76 territories in July –
In Oct:
vRouter: JNPR
vRouter: CSCO
vSecurity: Fortinet
vWANX: Riverbed

Expanded Distribution Model: IBM, CSC

Small FlexWare Device: supports up to 2 Apps (VNFs)
Medium FlexWare Device: supports up to 4 Apps (VNFs)
Form factors will continue to expand

AT&T SD-WAN approach

High performance MPLS core
Flexible access options
Near Real Time dynamic policy routing
Integrated customer experience

Near Term Roadmap

Networks: AT&T, Third Party
Technologies: software and hardware – e.g. VeloCloud & Palo Alto
Topologies: Virtual & Physical