Robin MacGillivray, BCS President, SBC West Message to Telecom Consultants Let me start out by wishing each of you a very Happy New Year, with hopes that 2004 will be your most successful year ever! Through your recommendations you have influenced millions of UPDATE dollars in revenue for the SBC family of companies Solutions for Success and it’s my commitment to you to do all we can to continue to earn your trust and confidence in Consultant/Vendor Sales Group 2004. That’s what “Stand & Deliver” is all about. February 2004 It’s a theme we’re using internally to constantly remind ourselves of our promise to you that we will always be the brand you can trust to deliver World-Class products and reliable service to your clients. It’s my personal goal to Stand & Deliver beyond your expectations. We believe the best competitive strategy we have for keeping Douglas Ireland customers is our ability to meet their needs, the first time, on time, SM everytime. There’s probably nothing more critical to the success of SBC FreedomLink Creating Special our business. As we enter a new year, there are a lot of things going National Wi-Fi Hotspot Network on that may directly impact you and your clients. Here are a few: ͷ SBC Internet Services, Inc. is now creating one of the nation’s We’re now offering Long Distance at incredible prices in all 13 states SBC Long Distance serves. largest wireless Internet access networks, commonly known as ͷ We’re offering all sorts of spectacular packages and bundles to Wi-Fi hotspots, under the FreedomLinkSM marquee. enable you and your customers to be more efficient and productive. SBC FreedomLink service offers hotels and airports, as well as ͷ We’re changing the competitive landscape with EchoStar and are restaurants, convenience stores, retailers and other chains with on track to launch SBC Dish Network early this year (2004). more than 25 locations, the opportunity to become an integral ͷ We’re extremely excited about Wi-Fi and the partnership part of this network with no capital expenditure, no installation opportunities we’re now offering through SBC FreedomLinkSM. continued on pg. 3 As we strive to exceed your expectations, we continue to value your opinion and appreciate your comments. Please continue to keep your Liaison Managers informed about what works and doesn’t work Ron Fischer so we can take the appropriate action. VoIP Offer Set Expanded We know you’re counting on us and you have my commitment that we’ll continue to Stand & Deliver 110% for you and your clients in 2004. The International Data Corporation recently projected that the US market for Hosted IP voice solutions will increase from $281M in 2003 to $6.7B in 2007. The Gartner Group just completed a review of our IP Solutions – they indicated that mid-size businesses should Kari’s Korner take a strong look. SBC IP Communications, Inc. plans to be, and is currently, a major player in this growing marketplace. Number Portability: Wireline or To that end, a complete set of services was launched that Wireless – Which is Best for You address this growing IP Marketspace. and Your Clients? continued on pg. 4 Most customers want the benefits of wireline service – such as reliability, security, high Live News SBC Broadcast, Feb 18 Back Cover quality and access to broadband service through DSL – and the convenience of wireless. Inside Working with Cingular®Wireless, we’re well-positioned to Microsoft Recommends SBC Yahoo! DSL Business Edition...... pg. 2 combine the benefits of both: Benefits of Being an SBC FreedomLinkSM Hotspot ...... pg. 3 ͷ Feeling Burned Out? ...... pg. 4 SBC companies and Cingular® Wireless are integrating their Wardriving, Warchalking ...... pg. 5 services, including a unified wireless-wireline mailbox and Fibre Channel Service Launched ...... pg. 6 FastForward, a cradle that transfers wireless calls to a wireline Spam Tips From SBC Internet Services...... pg. 7 phone while recharging the batteries on the wireless phone. Increasing Productivity ...... pg. 8 ͷDemand for broadband is soaring and best met over a Selling Below Tariff Across State Lines ...... pg. 9 wireline rather than wireless service. Pacific Bell Park Becomes SBC Park in 2004 ...... pg. 9 Data With David ...... pg. 10 ͷSafety. In blackouts, fires, floods, earthquakes and other What About Firewalls? ...... pg. 12 disasters, it’s essential to have a wireline phone connected SBC E-Services Certified ...... pg. 13 directly through a wall jack to our very reliable network and Teleradiology – The New Frontier...... pg. 14 not dependent on the external electrical power grid to SBC E-Services Helps Bankers Integration Group...... pg. 15 operate. SBC companies have several layers of redundancy Progress Report On Major Growth Strategies...... pg. 16 through battery and generator back-up systems to help SBC LD Expands International Portfolio With India 60 Plus...... pg. 17 customers receive service during power outages. If you use a Helping Businesses Protect Themselves From Viruses...... pg. 17 DSL Data News ...... pg. 18 cell phone, make sure you keep it charged up so it can serve Highlights Across The Regions ...... pg. 18 as an alternate means of communication. You can’t make or SBC West Restores Network After Southern California Fires . . . . . pg. 19 receive a call on a dead battery. SBC CVSG Resources For You ...... pg. 20 continued on pg. 2 Continued from page 1 company will allow you to use your existing wireless phones. KARI’S KORNER Be sure to factor in the cost of buying new phones for all of Business customers who are considering changing between wire- your employees, if required. Keep in mind that incoming calls less and wireline providers should consider the following before during regular business hours count against your minutes with determining if switching service is right for them: many wireless plans. You could end up paying for large buckets of minutes or for overtime minutes to accommodate calls that Service Options would be free on your wireline bill. ͷ Ensure your number can be switched. Check with your new provider ͷ Determine if a bundle is right for you. Phone companies often to ensure the number you want to keep can be transferred. offer businesses the flexibility to build a bundle of services for ͷ Do not disconnect your existing phone number. Begin the deep discounts (such as SBC Business ConnectionsSM). Be sure process of transferring to a new provider before you disconnect to check other offers to determine if they are competitively with an existing provider. Disconnecting first may mean you will priced and if you are able to customize a bundle to pick the lose the phone number that you are trying to retain. services that meet your calling needs. ͷ Be aware of what’s not available with wireless. Many business- ͷ Be aware of apples-to-oranges price comparisons. Be wary of class services are only available for wireline customers. These companies that compare their bundle prices with their competi- can include unlimited local, toll and long distance calling; 800 tors’ “a la carte” prices. numbers; free White Pages and Yellow Pages listings; and the ͷ Know your contract. If committed to a contract with your current ability to bundle services like wireline and wireless phone, provider (clauses could include wireless service, local wireline Internet access and Web hosting on one bill. Wireline phone service or Internet service on your local line), ask if there will be service is needed for a reliable DSL or dedicated high-speed a charge for early termination of the contract. Internet connection. Cutting the cord completely may mean you ͷ The benefits of a single telecom provider. Be sure to check with could lose some of these valuable services. various providers for discounts that you may receive for keeping all ͷ Consider wireline/wireless features. SBC companies are moving of your voice, data, wireless and Internet services with a single rapidly to integrate wireline and wireless features and function- provider. Some companies will not allow you to keep the discount ality. This gives customers even greater control and flexibility over on certain services if disconnecting one service of a bundle. their communications, plus the convenience of wireless and the ͷ The benefits of sticking. Your current provider may want to do all reliability of wireline. And for small businesses, SBC companies it can to keep you as a customer. Ask what it would provide to and Cingular®Wireless provide deep discounts and the conven- retain your business, such as contract extension or an attrac- ience of one bill with the shared minutes for business plans. tive bonus offer. ͷ Determine who services the line. Ask the sales representative which company will repair your phone or telephone lines if there Quality and Reliability is a problem. If having a local company with its own repair ͷ Business Stability. Some customers and partners might ques- personnel who will provide fast, professional service is important tion the stability of a business with only a wireless number. to you, be sure to ask before you switch. ͷ Quality. Wireless phones occasionally drop calls. That sudden Billing silence could mean a missed sales opportunity. ͷ ͷ One bill. Check to see if the company will bill all of its services Reliability. Quality and availability of wireless phone service is not on one bill, including local, toll and long distance, wireless and always as reliable as wireline service, especially during situations business services, like Web hosting. where thousands of customers want to use the phone at once. ͷ Electronic billing. Determine if you can pay your bill electroni- Please contact your Liaison Manager or Consultant Vendor Sales cally at no charge on the providers Web site (like SBC eBill). Group (1.800.552.5299) if you have any questions about Wireline February 2004 ͷ Know the one-time and monthly costs of the services. Be sure or Wireless. to ask if the prices quoted are part of a promotion or fixed for We’re here for you. Your Success is our Mission. the long term. Happy New Year to each of you! ͷ The costs of switching. Determine if the new or current provider charges a fee to switch providers. ͷ The costs of cutting the cord. Check to see if your new wireless 415.542.4516 [email protected]

Microsoft Recommends SBC Initially, Microsoft will offer SBC Yahoo! DSL processing transaction speeds, enhancing Yahoo! DSL Business Edition Business Edition as an addition to its the customer experience at the point of Microsoft Business Solutions Retail sale. And, as more retailers transfer their SBC Communications Inc. announced that Management System 1.2, a complete store operations to the Web, the networking capa- SBC Yahoo! DSL Business Edition has automation solution designed to assist bilities of SBC Yahoo! DSL Business Edition become a recommended high-speed Internet single- and multi-store retailers in stream- will make it easier and more cost efficient service for Microsoft Business Solutions lining point of sale (POS), customer service to integrate with supplier networks. small- and mid-market retail customers and and retail management. The solution “Our relationship with Microsoft Business industry partners. Under an agreement with empowers independent proprietors, store Solutions gives us an established sales SBC companies, Microsoft Business managers and cashiers through affordable channel to reach small- and mid-market Solutions is offering SBC Yahoo! DSL and easy-to-use automation. SBC Yahoo! retailers and significantly broadens the Business Edition to independent retailers DSL Business Edition complements the customer base for SBC services,” said seeking faster, more efficient online access Microsoft solution with a secure, always- Chuck Rudnick, senior vice president, through broadband services and features available, high-speed broadband connection Business Marketing, SBC Communications. designed specifically for the workplace. that improves credit and debit card- continued on pg. 3

2 Continued from page 1 Benefits of Being an SBC Target Venues SBC FREEDOMLINK SM fees, no management fees, and no need FreedomLink Hotspot? General Criteria to hire and train engineers or technical Co-Branded Marketing If a client meets any of these criteria, they support professionals. The only cost to SBC FreedomLink service will be launching are a candidate for FreedomLink Wi-Fi the venue is dedicated internet access. an aggressive campaign in 2004 urging our service: This is an excellent business decision, 80 million existing customers to visit our ͷ Strong Brand attracting more loyal high-income hotspot partners. We will also provide on- ͷ High-profile Location customers by offering the convenience of site marketing support materials. ͷ Over 25 Locations Internet access, and collecting revenue Direct Revenue Generation ͷ Subscriber Appeal every time an individual uses the service. Revenues generated by wireless Internet SBC FreedomLink service helps venues: access fees will be split between the Unique locations ͷ Increase Traffic with us promoting loca- venue and SBC FreedomLink. In addition, tions through our aggressive FreedomLink Airports venues will enjoy incremental sales marketing campaigns, recommending our Conference & Convention Centers improvements due to increased traffic and hotspots to almost 20 million business higher spend per visitor. Municipal Facilities and 60 million residential customers. SBC SMART Yellow Pages®telephone More Traffic Universities directories are another resource that Providing wireless Internet access is an Hospitals drives new business to hotspots. important differentiator, influencing Stadiums ͷ Increase Revenue Per Visitor by offering customer’s decisions of where to stay, eat, premium high-speed wireless Internet shop, or fill the gas tank. This effect will Lodgings access in seating and parking areas – be enhanced by our aggressive marketing guests that stay longer buy more goods. campaign highlighting participants. Hotels We put the venue in control: venues can Higher Spend Per Visitor Resorts set their own access prices based on The average Wi-Fi user is an educated, Casinos their market, and can even offer free mid to high income professional. Not only Timeshare Resorts access with a purchase or to VIPs. is wireless Internet access an opportunity ͷ Eliminate Risk by allowing us to pay for all to attract these customers, it also keeps Chains with over 25 Locations hardware, installation, maintenance, them on the property longer, providing the management, and technical support. Our opportunity to sell them more drinks, Gas Stations 24x7 telephone help desk will also desserts, and other goods. The additional Convenience Stores provide 5-star service to guests, leaving service will also create more loyalty Fast Food Restaurants venue staff free to serve in other ways. among these users. Family/Casual Restaurants As consultants, you know your clients better Added Value for Customers Supermarkets than anyone. We are installing hotspots all SBC FreedomLink hotspots will provide over the country as quickly as our engineers users with a valuable communications link – Sports Clubs UPDATE can move, and we would love to help your a connection to the office, the family, and For all of our Wi-Fi hotspots that meet the clients join the FreedomLink network. You the world wide web. criteria, we’ll pay the complete capital costs, have an opportunity to help your clients join network monitoring and maintenance, and a powerful marketing effort, add value to Increased Customer Loyalty 24x7 technical support for users. We also their customer experience, modernize their When a venue’s potential customers are provide valuable aggressive co-branded property’s infrastructure, and generate addi- making the decision which venue to choose, marketing targeting our 80 million business tional revenue with no financial outlay. If you the availability of wireless Internet access and residential customers. Contact Douglas would like to take the first step toward will be an important factor in steering Ireland for more details. bringing these benefits to your clients, we toward the SBC FreedomLink hotspot. can quickly prepare a site-specific action plan with you. Contact me at 415-537-8073 “What you don’t say may be just as important as what you say.” – F. MacDonald or [email protected]. Thank You. Douglas Ireland, Senior Account Manager for SBC continued from pg. 2 FreedomLink Venue Sales, MICROSOFT RECOMMENDS SBC YAHOO! DSL recently joined the company “For retailers and other small businesses, “SBC Yahoo! DSL Business Edition and after earning his Masters in SBC Yahoo! DSL Business Edition delivers Microsoft Retail Management System 1.2 Network Engineering in a superior online experience that stream- deliver an important competitive differen- Barcelona, Spain. lines operations and boosts productivity.” tiator for independent retailers by Microsoft Business Solutions customers in combining the convenience of broadband with point of sale and retail management Wi-Fi Takes Off the SBC 13-state region can take now advantage of valuable promotional pricing functionality that helps these smaller About 99 million people will have Wi-Fi for SBC Yahoo! DSL Business Edition, retailers to better strategically manage, capable computers by 2006, according starting as low as $26.95 a month for 12 control and plan the growth of their opera- to Gartner, Inc., a global research firm. months. Microsoft Retail Management tions,” said Brendan O’Meara, product unit Almost 31 million Wi-Fi users are System customers also will receive a free manager, Microsoft Retail Management expected in 2007. Office Gateway router – a $149 retail value. Systems, Microsoft Business Solutions.

3 Continued from page 1 Hosted IP Communications Service is being Feeling Burned Out? VOIP OFFER SET EXPANDED deployed nationally. The approximate current Tips On How To Get Recharged These service categories include: schedule is: 15 RSA’s by the end of 2003, ͷ Hosted IP Communications Service 30+ RSA’s by the end of 2Q04, and 70+ An UPDATE reader recently contacted me (HIPCS) – Network based VoIP RSA’s by the end of 2004. The deployment complaining of burnout. No wonder. With ͷ Network VPN solutions – data networking will include many RSA’s outside the tradi- busy work schedules, crowded freeways, a tional SBC footprint and will be offered by full load of family obligations plus many ͷ Internet Services – DSL and Dedicated SBC Telecom. other factors in life, it’s easy to see why so access at a variety of speeds many people get burned out. ͷ Managed IP Services – Co-Location, Continue to watch for information on this Dedicated and Shared Hosting, exciting IP product, as well as our many Everyone’s busy. We all feel burned out Consulting and Management others, in press releases and from your now and then but life’s a rollercoaster ride. Hang in there and chances are great that ͷ VoIP Equipment – Managed Services customers’ Account Teams. SBC plans to be your coaster car will rise again. Here are and Equipment from Cisco and Nortel very active and loud in the IP space in 2004. some tips I’ve learned over the years on The newest in this line of IP products is Long Distance Products and Promotions how to overcome burnout: Hosted IP Communications Service (HIPCS) – network based Voice over IP (VoIP). This We do not plan to let-up on our push in to 1. Take a walk. My dad always said walk service utilizes a network host IP Softswitch the Long Distance business. A number of around the block 10 times – it does technology to provide all the feature func- exciting product enhancements and promo- wonders for clearing your mind. tionality of a traditional PBX or Centrex. The tions are planned for the first half of 2004. 2. Listen to uplifting music. key enhancement is that the line is IP and Products: 3. Send a card or email to someone you can handle converged voice and data – ͷ International Toll Free Service is expected haven’t communicated with in a long essentially your phone and PC are inte- to launch in 2Q04 to over 40 countries time. grated and use each other to make calls or ͷ Significant enhancements are being access data (LAN or Internet). 4. Take action on any challenges you’ve made to the billing platform throughout been mulling over. My mom says, The primary benefits to your customers are: 2004 – both electronic and paper “Handle it, handle it, handle it.” ͷ Converged voice and data (Internet summary/format Beginning is half done. access for all lines) Promotions: 5. Read something inspirational or see a ͷ Reduced capital investment (network ͷ Dedicated Voice Access (DVA) NRC “Rudy”-type movie (with a happy ending). based) rebate ($250) 6. Smile – especially when looking in the ͷ Productivity (phone service integrated ͷ Special International Rates to top mirror. People around you may like it with PC and Outlook applications) called countries for High Volume Calling and it may make you feel better. ͷ “Unlimited” Regional and National calling Plan (subject to change and extension plans of 1-31-04 expiration) 7. Help someone – a neighbor, family ͷ “Unlimited” On-net calling to all other ͷ Special “winback” packages and member, stranger. It probably will make stations on HIPCS service bonuses for HVCP opportunities you feel good. ͷ “Risk Free” Toll Free – waive NRC, waive A HICS network configuration/arrangement 8. Change your diet. Try something totally 3 months of NRC consists of the following components: off the wall. Change your routine. ͷ Connections Credit Promotion for Small ͷ Dedicated Frame Relay Internet connec- 9. Walk out in your yard, look up in the Business plans – waive Monthly February 2004 tion to the closest SBC Internet POP sky and watch the clouds. We rush Minimum usage Commitment for 6 or 9 ͷ In general, each Regional Service Area around so much we forget the beauty months based on calling plan selected of a cloud, sunset or sunrise. (RSA) makes up a HIPCS network. All ͷ Access Line Winback – rebate of access 10. Look for the good in every situation. customer locations within the RSA are line NRC based on the Small Business connected together via their Dedicated calling plan selected You usually can find good in everything Internet Access to the same Softswitch if you look long enough. ͷ LD Private Line (DS1) – $950 MRC for and would be considered “on-net” Intra-state DS1 is being continued Remember, the best is yet to come. Learn ͷ Each network has access to a variety of ͷ Frame Relay – 20% discount on access, to enjoy the journey. The journey is the advanced capabilities based on which of port, PVC for all locations/drops based on reward. Happy Trails. UPDATE EDITOR the 4 packages they select. Advanced meeting certain minimum requirements. Note: The opinions expressed here are not features include: On-net calling, Web Also waives NRC. necessarily those of the SBC companies Portal access to features and administra- but merely some tips that may help. tive changes, Find me/Follow me call (Your support of our LD products has been Naturally there are many trained profes- routing, calling from Remote locations tremendous. Thank You and help keep us informed via your Liaison Manager of areas we sional mental health practitioners in society looks like “on-net”, Mobile Office, and need to continue to concentrate on to maximize who can be consulted for burnout and Voice Mail/Universal Messaging our assistance to you.) other such important matters. ͷ All “on-net” calling and calls within the same Regional Service Area are included in the monthly recurring charge “Life is like riding a bicycle. To keep your for each line/station Ron Fischer, Director of Channel ͷ Ability to call nationally or internationally – Delivery for SBC West, has been balance, you must keep moving.” National calls can be made on a per in the telecommunications – Albert Einstein minute charge (Standard Plan) or Unlimited industry for nearly 25 years. (Premium Plan)

4 In densely populated cities like New York, The most common symbol, see below, is Nancy Grover San Francisco, London, or Paris, access used to represent freely accessible open points can be identified by walking around nodes. If known, the warchalker will also Wardriving and with a wireless equipped PDA. Wardriving indicate the SSID and other information Warchalking can also be accomplished while riding a about that network. The second symbol iden- bicycle, flying an airplane (as long as you tifies a closed networks, or a network with are not flying too high), or even from the an unknown access method, and the third You’ve just installed your backseat of a cab. indicates a node protected with WEP (Wired new wireless network. It Wardriving can also assist in determining Equivalent Privacy, a security protocol). was a relatively painless process, but now wireless technology market growth through Despite some initial hype and media atten- you’ve got a potential security problem on direct inspection. Industry does not neces- tion, warchalking is now more of an your hands, and you may not even be sarily need to depend on a researcher’s Internet and wireless conversational topic aware of it. assessment as to how many wireless rather than an actual practice. There are a Too many wireless networks are gaping networks are out in the world. It’s possible few marks here and there in some of the doors that allow hackers, using just a and easy-to-use wardriving data to see how larger cities, but lately, warchalking has laptop, a wireless card and an antennae connected or technically savvy a neighbor- been used by the network owners them- made from a soup can, to read your e- hood or community is. selves.They use the marks to attract mail, steal your passwords, and view any Once wireless network data is collected, it clientele, announcing they can have free personal information you may have stored is often posted on the Internet using and open Internet access – usually for the on your computer. message boards, or posted to lists located price of a cup of coffee or a meal. Hackers could be using your wireless on web sites specifically created for this connection to send spam or viruses out to purpose. There have even been contests In Conclusion the Internet, with the only traceable route where the goal is to find as many non- If there are so many free access points pointing back to you, your business or your secure wireless access points as possible. why should the rest of us worry about our home. They can detect and intercept your For those using unprotected wireless own networks being hijacked? The answer wireless signal by using a method called networks, you may already be on one or goes back to the beginning of the hacker wardriving. Most wardrivers don’t misuse more of these lists. Or perhaps, your home age. People break into networks because the information they find, but there are still or business has been warchalked, identi- it’s fun, challenging, gives them bragging those who will. fying it as an open network. rights, and satisfies their intellectual curiosity. But most of the time, they just What is Wardriving? Warchalking want to see if they can do it. Wardriving has nothing to do with war, it is Warchalking was inspired by a custom You can make your wireless connection actually a play on the term wardialing. hobos used during the Great Depression more difficult to crack by taking basic Wardialing is the practice of dialing random where they used chalk marks to indicate precautions with your network: phone numbers trying to find a modem that which homes were friendly. Once a wire- ͷ Use WEP and Encrypt will answer, thus allowing unauthorized less access point is found, Wardrivers ͷ Change your passwords frequently UPDATE access. Hackers often run programs that mark a series of symbols on sidewalks ͷ When you leave or go to sleep, shut your call large blocks of phone numbers in an and walls to indicate nearby wireless system down attempt to find corporate, school or home access. That way, other computer users ͷ When connecting to another network computers they can connect to. The term know where they can find free a Internet such as your office, use VPN. wardialing, was coined from the 1983 connection, and potential access into hacker-cult movie War Games, where a someone else’s network. And remember, it is illegal to connect to a teenage hacker created autodialer software non-public wireless access point without that eventually helped him find his way into permission. Period. a Department of Defense computer. Nancy Grover, Regional Manager – SBC Corporate This new, wireless age has introduced yet Information Security, is responsible for the com- pany’s critical systems, including the core network another form of network discovery – war- and the Network Operating Centers. She is a driving. Wardriving happens when someone Certified Information Systems Security Professional. drives around with wireless equipment looking for unsecured wireless networks, to gain illegal access, or to simply check on the Off The Wire RF (Radio Frequency) environment. War- drivers gather statistics about wireless SBC Knowledge Ventures is a new unit networks by listening for their publicly trans- that actively markets and manages intel- mitted broadcast signals. Wireless access lectual property assets. In addition to points announce their presence at set inter- software assets, patents and trademarks, vals by sending a packet containing their the company’s intellectual property network identifier (SSID – Service Set includes the results of its internal and Identifier) and other information. A wireless, external investment in research and devel- network discovery utility running on a opment, brand development, process portable computer, such as a laptop or PDA enhancements and proprietary software (Personal Digital Assistant), listens for these development. Abha Divine is the unit’s public broadcasts and logs the data. new President and CEO.

5 Paul Bedell which is also International Organization for cause the devices not to work. The Fibre Standardization document 14165-1. The Channel protocol addresses this latency Fibre Channel industry standard for the transmission issue by having the CPE devices modify sig- media of Fibre Channel can include coaxial naling to insert additional control bits Service Launched cable, as well as either single mode or multi known as “buffer credits”. However, these Fibre Channel Technology mode fiber. SBC will provision FibreMAN on control bits reduce the effective throughput single mode fiber in the network core. that can be obtained on a Fibre Channel The information explosion circuit. Hence, the actual throughput a and the need for high-per- Fibre Channel is a high-speed transmission customer can obtain on a Fibre Channel formance communications technology that can be used as a front-end circuit is distance sensitive. Buffer credits for storage networking have been the focus communications network, a back-end are a function of the equipment used by of much attention during the 1990s. storage network, or both at the same time. the customer buying FibreMAN. FibreMAN Performance improvements in data storage, Fibre Channel is a driving force in the SAN will not be designed with buffer credits in processor speeds and capabilities, and arena for connecting multiple hosts to ded- mind since SBC does not have any control workstations have spawned increasingly icated storage systems. It has become a of how the customer uses buffer credits. data-intensive and high-speed networking popular host-to-storage interconnect tech- FibreMAN’s flow control delivers data only applications. The connectivity between these nology for open systems. as fast as the destination buffer is able to systems and their input/output (IO) devices SBC FibreMANSM Service receive it – which will be determined by the demands a new level of performance in reli- SBC has now launched a new Fibre Channel customer’s equipment (CPE). ability, speed, and distance. service known as “FibreMAN.” The FibreMAN Fiber Channels switches are part of the There are two basic types of data commu- service offering targets the exploding Storage customer’s network. These switches have nications between processors and Area Networking (SAN) market. Major drivers different settings per distance require- peripherals: channels and networks. A of this service include the following: ments. Fibre Channel switches have channel (as in “Fibre Channel”) provides a ͷ The compound annual growth rate (CAGR) software-based options to extend distance direct or switched point-to-point connection for Fibre Channel (ports) is projected to requirements as well as adjust the buffer between the communicating devices. A be 58% from 2001-2005 per IDC. credits allocated between ports in addition channel is typically hardware-intensive and ͷ More than 10,000 government regulations to the use of cut-through. transports data at high speed with low affecting storage in the United States Cut-through is a switching technique that overhead. In contrast, a network is an have been implemented since late 2001. allows a routing decision to be made as aggregation of distributed nodes (like work- ͷ IDC forecasts bandwidth consumption will soon as the destination of the frame is stations/PCs; file servers and peripherals) grow by a factor of 100 to 200 into 2006. with its own protocol that supports interac- received. Cut-through switching eliminates However in the end, disaster recovery and the use of conventional store and forward tion among these nodes. A network has business continuity are the two biggest relatively high overhead since it is software- switching. Buffer credits are used to deter- drivers in the push for Storage Area mine how many frames can be sent to the intensive, and consequently slower than a Networking, and FibreMAN service is the channel. Networks can handle a more recipient without waiting for an acknowl- ideal product to support these efforts. edgement for each frame. This allows the extensive range of tasks than channels as FibreMAN will be offered in the metropoli- they operate in an environment of unantici- switches to “fill-up” a 100km fiber with tan marketplace as a point-to-point private frames, without technically sacrificing per- pated connections, while channels operate line service with various levels of route amongst only a few devices with predefined formance. Each SAN application could be diversity, as well as an equipment protec- a little different in the sense that buffer addresses. Fibre Channel attempts to tion option in March, 2004. FibreMAN will

February 2004 credits may or may not be effectively used. combine the best of these two methods of extend connectivity between customer communication into an I/O interface that Some Fibre Channel switches are not sites to enable connectivity between using an extended fabric. meets the needs of channel users and storage devices. The FibreMAN service will also network users. Given this distance sensitivity of the Fibre be telco-owned, operated, and maintained Channel protocol, special consideration Fibre Channel is a highly reliable intercon- in each of our regions. This service will be nection protocol which supports rapid and communication will be required to an intraLATA offering and will be offered insure that customers are aware of the transfer of data between workstations, out of the state exchange tariffs. mainframes, servers, data storage systems, effective throughput they can expect on a FibreMAN will be deployed with customers FibreMAN circuit. Also, the SBC FibreMAN and other peripherals using Small Computer having the option to choose from either 1 System Interface (SCSI) and IP protocols. service will not be offered with guaranteed Gbps or 2 Gbps transmission speeds. Both throughput thresholds since the CPE Although it is called “Fibre Channel”, its 850 nm (multi-mode fiber) and 1310 nm devices provided by the customer deter- architecture doesn’t represent either a (single mode and multi-mode fiber) interface mine this. The SBC FibreMAN service will channel or a real network topology. It allows options will be available with both transmis- guarantee a specific line rate (e.g. 1 Gbps) for an active intelligent interconnection sion speeds. The 1 Gbps and 2 Gbps to be delivered between the customer scheme, called a “fabric”, to connect interface offerings are industry standard premises, but not throughput. devices. All a Fibre Channel port has to do transmission speeds supported through the is to manage a simple point-to-point connec- IEEE (Institute of Electrical and Electronics Benefits tion between itself and the fabric. Engineers) 802.2 standard. FibreMAN is based on technology that Fibre Channel is specially suited for connect- The signaling characteristics of remote provides reliability, scalability, high-through- ing computer servers to shared storage Storage Area Network (SAN) connectivity put, and low-latency. Users would enjoy the devices and for interconnecting storage con- applications using the Fibre Channel following benefits: trollers and drives. Fibre Channel standards protocol typically require very low latency in ͷ Use of an ANSI-standardized platform are defined in American National Standards order for the devices on either end to com- ͷ Optional transmission rates at 1 or 2 Institute (ANSI) document X3.230-1994, municate effectively. This latency can Gbps speeds

6 ͷ Protocol flexibility – capability to transmit Alternate Wire Center Diversity, and Inter- Switched Fabric data in a number of formats such as wire Center Diversity. Customers can Switched Fabric is a networked-switched SCSI; TCP/IP; IPI and HIPPI achieve end-to-end diversity by coupling topology that allows thousands of ports to Applications Alternate Wire Center Diversity and Inter- be connected to a fabric. Traffic between Corporate information is a key competitive wire Center Diversity. ports is routed through switches that can element, and FibreMAN will enhance an IT NOTE: Customers can achieve end-to-end diver- be interconnected and cascaded. The con- sity by coupling alternate wire center diversity nection is completely managed by the department’s ability to access and protect and inter-wire center diversity, in those instances this information more efficiently. Switched Fabric, remaining invisible to the where alternate wire center diversity involves nodes. The protocol allows systems to Fibre Channel is the number one applica- multiple central offices. attach to the fabric, to obtain addresses, tion for all types of storage. Potential Customer Architecture Options customer applications for FibreMAN and to become known to other systems. The following topologies are examples of include the following: Switched Fabric provides efficient sharing Fibre Channel arrangements that customers of available bandwidth. ͷ Network-based storage can implement with SBC’s FibreMAN We’re ready to support our enterprise cus- ͷ Storage backup and recovery systems to service. These topologies will not be part of tomers with this new service offering in support improved disaster-tolerance the FibreMAN service offering itself. SBC’s any way we can! ͷ Connectivity within server clusters FibreMAN service will be a point to point ͷ Connectivity within storage arrays fiber interconnectivity product between ͷ Access to large databases and data customer Fibre Channel switches. The warehouses FibreMAN service will provide electronics at Paul Bedell, SBC Associate Director of GigaMAN, can ͷ Connectivity from Internet data centers the customer premise enabling the intercon- be reached at [email protected]. He is an author of and/or web hosting data centers to cor- nectivity between sites to take place. The business books and teaches at DePaul University. porate data centers or other offices electronics will be Network Termination ͷ Storage transport for imaging applications Equipment (NTE) owned by SBC. Spam Tips From SBC Internet Services ͷ Infrastructure for “serverless” backup Fibre Channel allows for three different 1. Protect Your E-mail Address and serverless buildings. topologies: point-to-point, fabric switched Whenever you provide your primary e-mail Symmetrix Remote Data Facility or arbitrated loop. address for sweepstakes, website shop- For sites requiring a higher level of ping etc., you’re taking a chance that it throughput and local real-time mirroring, can be picked up by spam software. SBC EMC Enterprise Storage offers Symmetrix Yahoo! DSL and Dial members receive Remote Data Facility (SRDF) within a Fibre AddressGuardTM, allowing them to create Channel architecture. SRDF is software up to 500 substitute addresses to use for that offers a host independent, mirrored everyday activities, like shopping online. data storage solution that duplicates data Members can color code the substitute on a physically separate recovery or target addresses to better manage their inbox site transparent to users, applications, and use filters to automatically sort e- mails into specified folders. If a substitute databases and host processors. UPDATE When the primary source for the stored date address becomes overloaded with spam, is unavailable, SRDF enables fast switchover Point-To-Point the member can delete it without affecting to the target or recovery site so that critical A Point-to-point topology is the simplest their primary e-mail account. information is again available in minutes. and least expensive of the three topolo- 2. Check Privacy Policies Once the primary source is restored, SRDF gies. It consists of two Fibre Channel Always check a company’s online privacy can resynchronize the primary site with the devices connected to each other with a policy to ensure it won’t sell your e-mail target site, thereby ensuring information and single, dedicated fibre cable. The transmit address to third parties. database consistency. fibre of one device goes to the receive 3. Use Anti-Spam Tools Applications that particularly benefit from an fibre of the other device, and vice versa. SBC Yahoo! DSL and Dial members are SRDF over Fibre Channel implementation are There is no sharing of the bandwidth, armed with powerful anti-spam tools, like those requiring locally connected synchro- which allows the devices to enjoy the total SpamGuard, an e-mail filtering tool which nous, real-time mirroring. Information for bandwidth of the link. automatically sorts unsolicited bulk e- financial transactions, such as for brokerage Arbitrated Loop mail to the Bulk Mail folder. Additionally, accounts, banking, and mortgage servicing, Using the arbitration protocol, a single con- members can block e-mails from up to critical production data for telecommunica- nection is established between a sender 200 addresses or domains and block tions, databases, and manufacturing and a receiver, and a data frame is trans- HTML-graphics from being downloaded systems, are applications that would benefit ferred around the loop. Loops can be until they are deemed safe by the user. from SRDF over Fibre Channel. configured with hubs to make connection 4. Report Spam SRDF will not be an inherent part of the management easier. A total of 127 nodes Report unsolicited and deceiving e-mails to FibreMAN service offering. However, SRDF are supported within a single arbitrated the Federal Trade Commission or is an EMC Enterprise Storage offering that loop with one slot reserved for fabric use. consumer protection agencies. SBC customers could use to interface with SBC The FC-AL topology is an effective way of Yahoo! members can report unwanted e- FibreMANSM service. connecting multiple servers and storage mails to SBC Internet Services and Yahoo! Route Diversity Options devices, but a single break in the unidirec- quickly and easily by simply marking the Three options for FibreMAN diversity will tional loop stops all traffic. FC-AL is a message and clicking the “Spam” button be made available to SBC customers with subset of a Switched Fabric. in the inbox. This information will be used the launch of FibreMAN: Loop Diversity, to improve the SpamGuard filter.

7 Increasing Productivity products that address what is perhaps the Users simply “click-to-call” from Call hottest topic among CIOs today – voice- Logs or a Directory. IP Product Portfolio To Help Businesses Converge data convergence,” said Wilkins. “We’re ͷ Conferencing. From an Internet browser, Voice and Data Networks not only enabling application integration users can schedule conference calls on SBC Communications Inc. recently announced and convergence with our IP portfolio, but demand. a new portfolio of managed IP products, we’re also providing businesses of all ͷ “Plug and Play.” Users can plug in their furthering the company’s efforts to help busi- sizes with a new competitive choice – one IP devices, including IP-enabled phones, nesses benefit from the next generation of that has the services, expertise and from anywhere within a corporate voice and data networking and perhaps the commitment to help them embrace the network, allowing them to use their most substantial technological advance in next-generation communications network.” regular “office” number even when trav- telecommunications in 100 years. Both HIPCS and IP-VPN include fully eling or working from the road. Powerful new service options are being managed options, enabling businesses to In addition, by combining SBC PremierSERV rolled out as part of the SBC IP portfolio, adopt IP capabilities without extensive up- HIPCS and IP-VPN customized services, including an innovative new hosted VoIP front capital investments or in-house businesses can realize new IT efficiencies SM product, SBC PremierSERV Hosted IP management expertise because SBC by consolidating voice and data traffic onto Communication Service (HIPCS), which is companies provide those services. The a single business network. IT departments available in select markets today. Also new offerings augment the existing SBC also benefit from plug-and-play functionality – announced are new SBC PremierSERV IP- data and voice networking services to moves, adds and changes can be managed VPN options, including network-based provide a comprehensive range of options instantly from any network connection, and services with planned availability in the for businesses of all sizes. businesses can scale up or down without first quarter of 2004. The customized IP- “The breadth of the SBC portfolio, our calling vendors or ordering new cards. SBC VPN network connections provide managed services capabilities, and our PremierSERV HIPCS is available in select cost-effective, flexible IP connectivity strong existing relationships with business markets today, and will be available in cities options to support a broad spectrum of IP customers are all key elements of our nationwide by the end of 2004. The SBC IP applications, including VoIP. strategy – and key competitive differentia- portfolio also includes customer premises- The new portfolio is the result of an tors for the SBC family of companies,” based VoIP options that are available ongoing SBC strategy to take a strong Wilkins said. “Our mission is to help busi- nationwide today. leadership position in the rapidly emerging nesses determine the IP evolution strategy “VoIP and other IP-based applications and IP communications market, including IP that meets their individual needs. That products are by far the number one topic of networking and Voice over IP (VoIP). With a could mean a full switch to IP networking discussion today between us and our busi- full range of IP-based voice and data serv- and VoIP, or it could mean the gradual ness customers – making it a tremendous ices, backed by full service management adoption of IP products while continuing to opportunity for us to expand our relation- capabilities and years of expertise in deliv- use traditional voice or data services. SBC ships with these customers now that we ering IP connectivity, the company is companies are prepared to help busi- are able to deliver long distance services,” positioned to help businesses with every nesses identify the right strategy, and to Wilkins said. “Businesses recognize the step in the process of adopting IP-powered help them with every stage of implementa- advanced communications applications and communications capabilities. With regula- tion and management.” efficiencies that can be realized with the IP tory approval to offer long distance platform, and how those new capabilities services in all 50 states, the company is SBC PremierSERVSM Hosted IP can translate into competitive advantages now able to deliver IP services nationwide, Communication Service (HIPCS) and a healthier bottom line. We have February 2004 provide compelling and much-needed new SBC PremierSERV HIPCS integrates designed SBC PremierSERV HIPCS to choices for business customers. customized applications as well as the tradi- enable our customers to realize these IP products allow businesses to converge tional functionality of business voice-only advantages while minimizing headaches voice and data applications onto a single systems, all through a Web browser-based and up-front capital expenditures.” platform, resulting in cost efficiencies and interface – combining the customer benefits powerful tools that can increase employee of VoIP with the ease-of-use of a network- SBC IP-VPN Services productivity, such as a single inbox for hosted solution. And because VoIP uses the SBC PremierSERV IP-VPN offerings provide voice and e-mail messages, “click-to-call” same basic language as common data a highly flexible and cost-effective way for functionality from PCs, and “find me, follow communications services like e-mail, new businesses to establish or expand network me” call routing options. levels of voice and data integration are capabilities, including Internet and data “Since the mid-90s, the SBC family of possible, allowing employees to more effec- transport, and applications such as VoIP. companies has pursued a multi-faceted tively manage information and stay in touch Unlike many competitive offerings, SBC strategy to evolve with our business with customers, suppliers and one another. PremierSERV IP-VPN services work seam- customers, focusing on expansion of our SBC PremierSERV HIPCS service features lessly with existing data network geographic reach as well as our product include: connections, enabling businesses to add IP- portfolio,” said Ray Wilkins, group presi- ͷ Unified messaging. Voice mail and e-mail based transport connectivity to supplement dent, SBC Marketing and Sales. “Today, can be consolidated in a single inbox, and existing connections or add new business with the regulatory freedom to offer long voice mail can be forwarded like e-mail. locations to a network. IP-VPN connectivity distance in all 50 states, we’re able to ͷ “Find me, Follow Me.” Enables employees can be delivered through SBC PremierSERV serve the needs of our business customers to forward calls to a mobile phone, Dedicated Internet access connections. beyond our traditional service area. remote office, another extension, etc. The straightforward package incorporates “At the same time, we’re matching our ͷ “Click-to-Call.” Enables one-click calling all elements needed to support IP national scope with innovative, in-demand from a phone set or PC Web browser. continued on p. 9

8 Carlos Alas, Jr. of which must be in a different region, Continued from p. 8 such as SBC California and SBC Texas. INCREASING PRODUCTIVITY Selling Below Tariff The pre-approval of a Sales Vice-President networking, including Dedicated Internet is required before an Account Team can connections, needed equipment, remote Across State Lines proceed with an MSA/MDA. access software, and service management With Master Once a Customer has been pre-qualified, a and monitoring options. IP-VPN offerings, Service Agreements Site Directory based on the customer’s including software-based solutions and Billed Telephone Numbers (BTNs) is devel- offerings delivered via customer premises- oped using their current account information based equipment, are available nationwide across the regions and for the services they today. SBC companies plan to make avail- As a telecommunications company serving wish to include in the contract. The able full-featured network-based solutions business customers across a thirteen-state Customer then reviews the Site Directory for in the first quarter of 2004, providing even region, we’re poised to help customers accuracy and approves it. Once approved, greater levels of flexibility and scalability. whose businesses are multi-regional opti- SBC then sets about coordinating all the “In the coming years, businesses will mize their service and the value they derive elements that will be required to put the continue to move from traditional data from it. One of the tools available to the contract together. That includes generating services to IP-based platforms to take Sales Account Teams to achieve this is the an Optimization Report which takes into advantage of applications and cost effi- Master Service Agreement (MSA) and account the customer’s revenue, products ciencies,” Wilkins said. “Over the course of Master Discount Agreement (MDA). Both of and usage. A special “Kick-Off” call is held, time, these IP connections may be the only these take into consideration a large headed up by the Global Solutions Group, network connections that businesses customer’s geographic footprint as well as with all the departments involved, such as need. In the meantime, with the SBC IP- service and billing. The benefits to a Pricing, Contracts and Sales, in order to VPN portfolio, we’re taking a hybrid customer in entering one of these types of assign areas of responsibility and timelines. approach, delivering the flexibility to allow Agreements are not only Master Discounts Next, a Rate Letter is generated for each of businesses to take steps toward IP without across the SBC Regions but also the affected Regions. The pricing is then abandoning existing investments in other Convergent Billing which aggregates all Core presented to the customer. Once the pricing networking technologies.” Products and Services across all regions and the terms have been approved by the and is presented in one bill for the customer, the contract is then developed customer, provided the customer requests and presented to the customer for signa- and qualifies for Convergent Billing. ture. SBC countersigns the contract at the Senior Sales Vice President level. The Pacific Bell Park Becomes Coordinating an enterprise-wide contract contract is then filed with all the respective for Core Products and Services across SBC Park in 2004 Regulatory Agencies in the affected States SBC’s thirteen-state region requires a lot The San Francisco Giants and SBC Commu- and implemented. The process takes of resources. Not only does the pricing nications Inc. changed Pacific Bell Park to approximately two to three months barring and product mix vary from region to region SBC Park on Jan. 1, 2004. The two have a any complicated negotiations in the process depending on a customer’s individual 24-year agreement that gives SBC

that may happen. UPDATE circumstances, but the regulatory environ- Communications the naming rights to the ment is complex and different from state These types of contract opportunities are team’s popular four-year-old waterfront ball- to state and region to region as well. To exciting both for the Global Solutions park. The new name reflects the company’s address these and other parts of Group working on them as well as the rest move from a regional brand to a global iden- constructing such a complex deal, SBC of the teams collaborating and partici- tity that went into effect a year ago. “SBC has put in place an organization known as pating in the negotiations and contract played a critical role in the development of the Global Solutions Group. This organiza- development. You can find out more about our ballpark and helped keep Major League Baseball in San Francisco,” said Larry Baer, tion takes on these large-scale projects multi-regional Master Discount Agreements Giants executive vice president.” The park from beginning to end. The Global by contacting your Consultant Liaison has helped reinvigorate the south end of Solutions Group puts the different depart- Manager listed in the back of this publica- San Francisco’s downtown waterfront and to ments from different regions together and tion or by calling 1-800-552-5299. transform it into one of the City’s most manages the project through the qualifica- Carlos R. Alas, Jr. is an Associate Director in vibrant and exciting new neighborhoods. tion, pricing, contract development and Contract Development for SBC California. He has Across the street from the park is the new been with SBC for nine years and previously held implementation stages. The following is a Mission Bay community. SBC, working with positions as Account Manager and Executive brief outline of what is involved in putting Catellus Development Corporation, is together a multi-region agreement. The Briefing Center Manager in San Francisco. He holds an MBA in International Management. deploying in the Mission Bay community, a good news is that SBC has the resources next-generation fiber to the premises and the mechanism to bring this type of network capable of providing voice, data, agreement to any customer who qualifies and video services via a fiber network direct and is interested in a multi-regional “Success is not the key to happiness. to the end-user. Recently, SBC California Master Discount Agreement. Happiness is the key to success. and SBC Internet Services, Inc. began In order to qualify for an MSA/MDA, a If you love what you’re doing, you will offering residents of Mission Bay voice and customer must be billing in the vicinity of Internet services over its fiber network, $500,000.00 in Total Billed Revenue for be successful!” which enables applications ranging from Core Product and Services, such as usage – Albert Schweitzer streaming video and audio to interactive and local access. Their geographic pres- video games and video conferencing, as ence must span at least two states, each well as access to a community-based Intranet portal known as mbconnect.net.

9 flexible bandwidth increments to support provide direct compatibility to the Data with David customer requirements. Customers can customer’s existing equipment, there is no OPT-E-MANSM connect to OPT-E-MANSM using a switch, need for up-front investment in expensive bridge or router. CPE. Further cost savings are derived from The focus in the telecom ports – 100 Mbps for instance on an Customers best suited for this new product industry is rapidly Ethernet router, are 10-20 times less have a need to connect multiple locations shifting from voice to expensive than OC-3 ports on SONET and include medium and large business data as carrier networks equipment. In addition, most business IT customers, inclusive of Fortune 1000 migrate from circuit managers are familiar with the Ethernet companies, in all industries including the switched to packet protocol while Telco services such as ATM public and private sectors. Vertical markets switched. As bandwidth requirements and even dedicated services are less ubiq- include: government, education, health increase, customers continue to want uitous in the IT world, additional training care, financial, retail, and high tech, as well more cost-effective and higher bandwidth costs are virtually eliminated. services across a metropolitan area. as Internet Service Providers and Ethernet, the favorite protocol of Local Application Service Providers. Ethernet requires less equipment, service Area Networking, is becoming the gener- and operational costs. Because Ethernet ally accepted protocol in Metropolitan Benefits is the dominant standard in the LAN Area Networks (MAN) providing trans- Simplification and Convenience of Network arena, demand continues to drive the parent connections at continually higher Architecture prices down for hardware. Many customers speeds. A MAN is characterized as will eliminate the need to purchase expen- OPT-E-MANSM is provisioned over a fiber intracity in nature, about 75-80 miles in sive servers and internetworking facility to the customer premise and length with bursty traffic. Ethernet is an equipment, such as a bridge or router, at provides an Ethernet interface that can easy technology to manage, it’s flexible, remote LAN sites. Additionally, because increase bandwidth dramatically – e.g. cost-effective and it provides scalability, most corporate networks are using 10/100 Base T interface can support which is a feature not easily provided by Ethernet, companies will be able to save from 10 Mbps to 100 Mbps without a new any other service available today. additional expenses in training, manage- interface being installed. ment, and administrative expenses. As the power of applications, PCs and work- By connecting via Ethernet, there is no SM stations increases, the need to connect OPT-E-MAN allows customers to add band- requirement to incorporate a separate them at higher speeds becomes greater. width as their needs grow so in essence, protocol or interface. A single handoff from High-speed interconnection of LANs and customers only pay for what they use. the provider to the customer adds conven- Dedicated Internet Access are great applica- ience and simplicity to the network Here are four instances when scaling will tions that can take advantage of the architecture. OPT-E-MANSM allows IT prove beneficial to customers: benefits of Ethernet. Customers who have managers to maintain connections without ͷ multiple locations within a metropolitan Changes in business patterns: Change in introducing new or additional protocols. area, and users running bandwidth intensive the number of employees, applications, applications such as large file transfers for We will install and maintain all equipment business conditions, mirroring, or data- database storage and retrieval, distance needed to provide direct connectivity to the base replication. learning streaming technologies, medical customer’s existing equipment using stan- ͷ Seasonal/anticipated events: sales, imaging, CAD/CAM applications, disaster dard connectors. As a result, for promotions, holiday credit validation, recovery/Storage Area Networks, Internet customers, it appears as if all equipment school registration, and sports events.

February 2004 access or video would benefit from the for their network is in the same building or ͷ Optical Ethernet Products at the native 10 campus – the transfer of data across the Unanticipated events: data analysis, Mbps – 1 Gbps rate. MAN becomes completely transparent. research, back-up service, disaster we’ll also monitor the network 24 x 7 recovery, or software development. Optical Ethernet Metropolitan Area Network providing the customer a fully maintained ͷ High volume traffic: during the school (OPT-E-MANSM) and managed network solution simplifying year/school day vs. during school holi- network management and administration We’ve introduced a new in-territory days or summer vacation. as well as cost. product, known as Optical Ethernet Network Flexibility Metropolitan Area Network (OPT-E-MANSM) Cost-Effective to meet customers’ MAN needs. It is an Greater network flexibility allows the SM advanced, packet and fiber-based trans- OPT-E-MAN provides the customer with a customer to add new locations with ease. port providing Layer 2 Ethernet service. known protocol, reducing operational costs In addition, changing the capacity of band- OPT-E-MANSM acts as an Ethernet bridge to for training, employees, maintenance and width between existing locations is easier transparently interconnect multiple administration, as well as capital costs for and faster. OPT-E-MANSM should be easier to SM customer local area networks within the equipment. Additionally, OPT-E-MAN is administer than existing Frame Relay/ATM same LATA (intraLATA) and may also be very price competitive when compared to Private Line networks because it eliminates used as an underlying Dedicated Internet Frame Relay and ATM services at equiva- burdensome PVC management. SM lent bandwidth levels and contract terms. Access transport. OPT-E-MAN supports Reliability and Security nearly any data transport configuration – Ethernet interfaces are less expensive point to point, point to multi-point, or multi- because of the fewer physical interfaces, Higher reliability and security is made point to multi-point – using physical and servers, and routers that are necessary. possible by the 24x7 monitoring that is virtual connections to meet specific busi- For most customers, this service will be offered to customers. The customers in ness needs. Connections to the service “plug and play” on their existing equip- traditional non-managed services incur the range from 10 Mbps – 1 Gbps providing ment. By utilizing standard interfaces to cost in dollars and man-hours in

10 purchasing, maintaining and managing their The service also offers the customer the ulti- ͷ general data traffic (Bronze) own networks. With one of these managed mate solution for customers experiencing ͷ delay sensitive VoIP traffic (Silver) services, the customer has no costly soft- bottlenecks in the WAN. In addition to higher ware or equipment to own and/or grow bandwidth options and scalability, the serv- ͷ delay sensitive video traffic (Gold) obsolete, no engineers to hire, and no ices are secure and reliable service. Additional differentiations between the continuous training requirements. Service Level Agreements three offerings include: Furthermore, the possibility that an The SLAs that SBC will offer with the prod- ͷ point to point, point to multi-point and intruder might penetrate the network archi- multi-point configurations tecture is immensely decreased because ucts will benefit the customer and will of the service monitoring as well as the ensure top-notch service and reliability. Our ͷ bandwidth options SLAs will differentiate this product from assigned secure ports and Ethernet Virtual ͷ other carrier offerings and provide the applications such as Layer 2 Ethernet Connections (EVCs) that will be associated Virtual Connections to enable TLS using with each customer connection. EVCs necessary data to allow the customer to justify their network expenditure and growth. VLANS; dedicated Internet access; provide logical point to point dedicated Frame/ATM interworking and Layer 3 connections between two customer loca- This diagram shows a high-level view of VPN service tions. Virtual LANs (VLAN) will be assigned the SBC optical Ethernet environment. The ͷ to the EVCs to ensure security of customer Cisco 7600-based Ethernet Optical Core MPLS-enabled traffic. The fear of intrusion into a provides is surrounded by Cisco 3550 ͷ redundant core network customer’s network is further diminished devices at the customer premises which ͷ since the use of Multi-Protocol Label are owned and operated by SBC. For enter- the type of SLAs offered Switching (MPLS) in the core allows for prise location connectivity (Transparent ͷ Cisco platform configuration of a dedicated logical LAN, or TLS*) such as that shown at the The OPT-E-MANSM Basic service was the first connection for each customer. extreme left and right sides of the offering delivered in 2003, with the other diagram, optical transport provides the MPLS will be using within the core archi- offerings scheduled in 2004 and 2005. physical layer connectivity between stand- tecture. By using MPLS, SBC will be able Cities that launched it in 2003 include: San alone customer locations and a location to add a level of security to the customer Francisco, Chicago, Dallas, Los Angeles and housed in an MTU. Similarly, ISP backbone traffic and will be able to offer enhanced SNET territory. Cities planned for early 2004 connectivity (top) provides the basis for Grade (Quality) of Service parameters and include: Houston, Detroit, Sacramento, San Dedicated Internet Access (E-DIA). eventually offer interworking capabilities Diego, Kansas City, St. Louis, Cleveland, with existing SBC products such as Frame *TLS is simply a high-speed connection Indianapolis, and Austin. Relay, ATM, and GigaMAN. MPLS in the between two or more LAN segments across We offered our Bronze Level (general data core is transparent to the customer. But by a metro or wide area that gives users the traffic) in late 2003 and will complete using it, it enables SBC to do a number of appearance of being connected to the same Silver Level (supports VoIP and delay things such as making the product more local area network. It provides an all-Ethernet sensitive traffic) in the first half of 2004. robust, helping to segregate customer model that simplifies the handoffs between Our Frame/ATM interworking will follow in traffic by establishing a secure EVC over a the local and transport environments yet is the latter half of 2004 with our Gold Level UPDATE shared infrastructure, and enables SBC to perfectly capable of transporting Layer Three (supports video over IP) in 2005. support many customers efficiently by protocols such as IP. allowing scaling to meet customer needs Summary more effectively. Additionally, MPLS allows Product Development for support of Service Level Agreements Many customers today utilize transport and OPT-E-MANSM will eventually have three (SLA) and provides redundancy in the core, packet-based services as a means for inter- Layer 2 switched Metro Ethernet offerings traffic engineering and fast-reroute. connecting two or more locations. This when fully developed (Basic, Basic Plus interconnection is done via bridges and Superior Network Performance and Premium) together with three grades routers and can be quite expensive and SM of service (Bronze, Silver and Gold). The The OPT-E-MAN services provide guaran- does not provide a lot of flexibility. OPT-E- difference between these offerings is the teed bandwidth through the MAN at the MANSM will provide the means for customers robustness of the platform support: native speed of the customer application(s). to migrate their current LAN topologies to a new, faster standard. SBC’s new optical Ethernet solution is low cost, simple and flexible. It offers reliable and secure network architecture with an MPLS core, integrates seamlessly with pre-existing infra- structures, scales to LAN speeds, supports the most common enterprise applications and supports all topologies.

Tom David Liaison Manager [email protected]

11 Jerry Hinek Don’t forget about Instant Messaging, web attacker in proximity. Wireless routers, like meetings, Extranets and even dial-up their wired counterparts, usually have a What About access. All these devices need support built-in firewall, but if you use a wireless staff to keep them updated and running. hotspot somewhere else you have no Firewalls? control over security. Personal Firewalls Anti-virus Software Introduction Did you know that many firewalls are free? Many computer viruses ride on E-mail, and If you ever read Charles Microsoft®Windows XP has a built-in fire- can sneak by most personal or inexpen- Dickens’s A Tale of Two wall. There are highly rated software sive firewalls. Neither the software firewall Cities you will remember firewalls available to download for free nor the router will provide adequate anti- the first 12 words: “It was the best of from reputable web sites. Others are free virus protection. You still need anti-virus times; it was the worst of times”. That to try for a month then cost less than software running on your computer to time is today for firewalls. As attacks on $50.00 to keep. Personal use firewalls are protect you from viruses carried by E-mail computer networks have gotten more reasonably priced. or instant messages. sophisticated, firewalls have gotten Hardware stronger and more sophisticated. As busi- Small Business Firewalls nesses demand more and more from their I recommend a home router for any broad- networks, businesses punch holes in their band connection. Even if you have only one A small business may be able to survive own firewalls, taking on more risk. computer you should get the router, but the with the same type of firewall you would router will let you connect 4 to 8 computers use for your home. That decision depends This article will discuss how you can use a simultaneously to the same high speed on the number of employees, and on how firewall to protect your personal or busi- line. Read the box. Make sure it has a fire- much the business relies on connecting to ness computer network and information. wall built in. Look for a sale and you the Internet for its viability. If you work My goal is to examine firewall security as shouldn’t have to pay more than $100.00. alone, go with the classic model. serving both about the need for security The two common firewall protocols on and the need for risk. A well chosen fire- Travel Agency personal routers are Network Address wall will help you to mitigate the risks. Translation (NAT) and Stateful Packet A small travel agency with 10 or 20 worksta- Inspection (SPI). Some newer routers have tions in a single office might find the model A Brief History both protocols built in. They work fine out to be a bottleneck. Travel agencies depend The classic idea of a firewall is a mecha- of the box with minimal setup and no on their networks. They use the Internet to nism that separates a small network such ongoing maintenance. You can easily connect to the reservations systems of the as a business network from the Internet. configure them to meet your needs from travel and tourism industry. Travel agents All communication in or out is directed your web browser or another graphic user have E-mail accounts for the business and through one point which can prevent unde- interface (GUI) packaged with the router. may have to download video clips from desti- sirable access from outside the small nation hotels and resorts. The agency may Software network. That one point may be a single have a web site. The accounting system is router or network server capable of Software firewalls can be just as effective also online. The agency may employee filtering network traffic. as routers, but they place additional contract agents who work from home, but processing on the personal computer. They who need access to the company’s That was fine when the Internet had 5% of have to filter network traffic at the same computer and networks. An inadequate fire- the traffic it has today and business time that they retrieve your E-mail or load wall could hurt this type of business.

February 2004 networks mainly connected dumb terminals your web page. The firewall built into the to mainframe computers. But the Internet Bakery router filters the network traffic and allows has become very useful: We put network only the things you want to get to your A small bakery may have a network and interface cards (NICs) into personal computer. Your computer will seem faster. computers, but the demands on the computers (PCs) and connect them over network are trivial. Most of the network transmission control protocol/internet If you are not convinced that you need a communication would be inside the fire- protocol (TCP/IP) based Ethernet local area personal router at home or even that you wall. The bakery may do some online networks (LANs). Businesses communicate need a firewall, download free firewall soft- ordering, but that business can function with other businesses across network ware that will report what it blocks. Use it over a phone line. A single point of access wires. Employees take their laptop for a few days or a week; then look at all would offer the strongest and most cost computers home and need access from the attacks that were blocked. Some of effective security for the business. If busi- there to corporate networks. what it blocks is perfectly innocent network ness is good and the bakery grows into a garbage, but you will see Internet Worms The original firewall model could break chain of bakeries, then they might want to and Trojan-Horse attempts listed in the many a business today. Firewalls have had consider a firewall for each store or loca- report. Your personal computer could be to keep up with the demands of more tion. Locations can communicate over a commanded to attack other computers or network traffic and greater threats. VPN. The business will probably never be a spread hostile software. Some large “denial network centered business, so a wide area Big businesses can have tens or hundreds of service” attacks enlisted many infected network (WAN) would unnecessary. of gateway devices securing their network computers to hit a target simultaneously. perimeter. These devices can be side by Wireless Large Business Firewalls side or in different locations. One device manages the flow of E-mail, scanning for If you are on a wireless network you prob- Large complicated businesses need viruses and blocking SPAM. Another ably want to have a software firewall on complex firewall systems that enable the manages the Virtual Private Network (VPN) your computer. On a wireless network you business and mitigate risk. The firewalls and yet another protects the website. are more vulnerable to an opportunistic they need must let a lot of traffic across

12 the network perimeter and block a lot unlimited access to a particular database SBC E-Services Certified more. Most large businesses would lose server on Company A’s network. Someone significant revenue if the network were believes that only the HR department from SBC E-Services, Inc., a subsidiary of SBC unavailable and if employees, business Company B should have that access. The Communications Inc. has been awarded partners and customers could not access rule to allow unlimited access is changed HP SP Signature Certified status through parts of it from anywhere in the world. A to block access and a rule to allow the HR the HP Service Provider (SP) Certification single point of access is not only an department to have access is added. program, establishing SBC E-Services as unacceptable bottleneck; it’s also a Those rules have to come in the correct an industry-recognized Web hosting and single point of failure. order. If the rule to block access is first, server collocation services provider. Complex, Non-Business Organizations then a request for access from HR will The HP SP Certification program is a always be denied. Managing the hundreds comprehensive assessment of people, Even school districts and government or thousands of rules employed by large processes and technology, and provides organizations have found that their needs companies is a very complex job. recognition of a service provider’s (SP’s) won’t tolerate the confinement of a Poorly Configured Firewalls capability to consistently deliver a reliable classical firewall. For them, firewalls have hosting service to a defined standard, become larger, far more complex and If support people do not do their jobs well based on industry best practices. From sometimes fairly porous. It’s not unusual the business becomes vulnerable to information technology infrastructure to even to have internal firewalls, separating several kinds of problems. Incorrectly management best practices, participation one department or school from another. configured firewalls could disrupt the busi- in the HP SP Certification program repre- Many Devices on the Firewall nesses they should serve and expose the sents a commitment to high standards business to malicious activity. With a more complex model, the firewall is that increases customer confidence. HP SP Certification is concerned with only the a collection of network routers and high Choosing a Firewall speed servers performing specific tasks. SP’s ability to deliver reliable services. SP Routers at the entry point or points of the By now you can tell that the firewall you Certification is global in scope, ensuring firewall examine network traffic, and direct choose has to match your needs. Malicious that a service provider is capable of it to appropriate servers that perform the attacks over the Internet will only increase in meeting consistent quality standards in primary security functions for their own volume and frequency and the need for each of its data centers worldwide. traffic. VPN goes to one server that authen- security has never been greater. If you are a “The HP SP Certification program provides ticates users and negotiates encryption large company you are a large target for guidance and confidence to companies keys. E-mail goes to another server that network threats. Your firewall has to handle outsourcing their hosting requirements to scans the E-mail for viruses or hostile your needs today and tomorrow and may service providers,” said Ken Bloom, acting attachments before passing it along to need upgrades as your business grows or as managing director of the HP SP Partners departmental mail servers or directly to the attacks change. Think about the things you and Programs. “The program rigorously addressee. Web page requests go to the want to do, then think about the best ways assesses a service provider’s IT systems web server. There may be specific firewall to do them securely. That’s the key to secu- and services running on the full range of gateways for customers ordering goods or rity: security should enable your business. HP platforms and storage, across six Jerry Hinek is a Senior Business Security for employees checking their benefits from domains of availability: IT Service UPDATE home. Instant messaging may have its own Manager for SBC Services. He earned an MBA in Management, Networking, Applications devices on the firewall. Voice over IP will Information Management and is a Certified and Database, System Software, certainly need even more devices. Information Systems Security Professional. Hardware, and Environment.” Support SBC Communications’ Board Proposes All SBC E-Services focuses on full end-to-end All these devices attached to the firewall Directors Stand For Election Annually support for customers, including access, serve the dual role of protecting the inside The Board of Directors of SBC networking, equipment, and services. SBC network and helping the business to Communications Inc. voted to submit to experts handle all elements of customer communicate better with the outside shareowners a proposal requiring every need, from design to delivery to ongoing network. The problem is that each of these director to stand for election annually. management of hosting services. SBC SM devices has to be managed by people with Currently, SBC has a classified board PremierSERV Hosting Solutions also the expertise and the budget to keep them structure where each director is elected include monitoring and reporting tools, functioning properly. System administrators to a three-year term and a third of the which provide businesses with details have to update or patch software or oper- board stands for election each year. required to proactively manage opera- ating system periodically. Security tions, system performance, resource Shareowners will vote on the proposal at availability and site usage. administrators have to enforce security the company’s annual meeting of share- policy by setting firewall rules that may owners on April 30, 2004. The full SBC PremierSERV Hosting portfolio prohibit access to certain websites or block includes a wide spectrum of hosting solu- all file transfer protocol (FTP) requests “Our board believes the annual election of tions, from shared, managed and server across the perimeter. Someone has to directors is consistent with SBC’s commit- collocation to enhanced services, such as scan firewall logs for signs of aggressive ment to good corporate governance and storage and managed security, to meet attacks. This can be done with software. being accountable to shareowners,” said customers’ demanding hosting needs. Edward E. Whitacre Jr., SBC chairman and Firewall Rules CEO. “We have a talented, diverse and Additional information on SBC E-Services Sometimes firewall rules can have unex- independent board of directors today, and enhanced managed hosting portfolio and pected and undesirable consequences. we expect shareowners will support the case studies on how SBC E-Services can Suppose there has been a longstanding board’s recommendation to strengthen its help your business is available at rule in the firewall to allow Company B accountability.” www.sbc.com/premierserv.

13 Table 1. Time to Transmit Single MRI Slice (in seconds) Jagdish Kohli, Ph.D. Time vs. network speed for varying compression ratios (512 x 512 x 8 bit slices) Teleradiology – 28.8Kb Modem 56Kb ISDN@64Kb T-1 (1.5Mb) The New Frontier 3:1 75.0 13.0 11.0 0.5 8:1 10.0 5.0 4.0 0.2 Teleradiology is a growing 20:1 4.0 2.0 2.0 0.1 area in the medical industry 28.8Kb modem already doing compression at 3:1. Compression ratios are estimates. 3:1 is lossless where inner human body images can be interpreted by radiologists Table 2. Exam Capacity for Primary Diagnosis for Various Networks (Exams in 24 hours) at a distance. Many technological develop- Exam capacity for 24 hours vs. network speed (lossless compression) ments in the field of high speed networks 28.8Kb Modem 56Kb ISDN@64Kb T-1 (1.5Mb) have contributed to the ongoing growth of Radiograph 14 115 130 3,000 the teleradiology business. CT 8 55 65 1,500 In this article we discuss the following MRI 10 90 105 2,400 aspects of teleradiology: Teleradiology Overview Compression ratios estimated at 3:1. Network efficiency estimated at 66% for 28.8 modem, 80% for others. High Speed Networks 24-hour period for reading at different network speeds. Again a high speed network is a Future must to manage the flow of a large volume of studies cost-effectively. Teleradiology Overview High Speed Networks MRI (Magnetic Resonance Imaging), CT A customer’s perspective of a telecommunication network speed is defined by the speed (Computed Tomography), US (Ultra Sound) at which the information can be downloaded from a remote site or uploaded for trans- and Radiographs are some of the tech- mittal to another user. This customer experience is best represented by a number of niques by which inner body images are DSL technologies. The family of DSL technologies, typically denoted as xDSL, includes captured. These images assist radiologists High bit rate Digital Subscriber Line (HDSL), Asymmetric Digital Subscriber Line (ADSL), to diagnose brain tumors, blocked heart Single line high speed Digital Subscriber Line (SDSL), and Very high speed Digital arteries, blood clots in veins and many Subscriber Line (VDSL). xDSL modem technology permits ultra-fast, cost-effective, and other microscopic diseases in the human constant access to the Internet over ordinary copper telephone lines. body. Surgeons use inner body images to xDSL provides speeds up to 8 Mbps (up to 52 Mbps with VDSL) downstream and up to accurately operate on the right part and 1 Mbps upstream (up to 2.3 Mbps for SDSL). High transmission speed is now consid- position in the human body. ered crucial to Internet applications such as interactive multimedia including medical Radiological images have been created on images. Representative examples of network speeds from a telephone network are radiographic films for many decades. More shown in Table 3. The availability of a particular speed is also a function of the distance recently with the developments in digital between customer location and telephone company remote terminal. technology, these images are captured as soft computer files. There is a lot of infor- Table 3. xDSL Speeds mation stored in each computer file as dots Distance (feet) Downstream (receive) Upstream (send) of varying intensity represent the inside 8,000 7.1 Mbps 90 Kbps details. Digital images have the following 8,000 1.5 Mbps 1.5 Mbps

February 2004 advantages as compared to film X-rays: 12,000 1.5 Mbps 90 Kbps ͷ Easy to transmit over a telecommunication 12,000 1 Mbps 1 Mbps network 18,000 640 Kbps 90 Kbps ͷ Ease of consultation by a group of 18,000 256 Kbps 256 Kbps specialists for simultaneous viewing Unlimited 144 Kbps 144 Kbps ͷ Remote viewing by any radiologist inde- pendent of place and time. Wireless Networks Table 1 captures the amount of time A number of advances have taken place in wireless technologies over the past two required to transmit a single MRI image decades. The high speed wireless network can allow a radiologist to review medical using a range of varying speed networks. images from anywhere by using a mobile laptop computer. The time to transmit an image also US wireless carriers are currently building the third generation (3G) wireless networks. depends upon the amount of compression These networks will provide speeds in the range of 384 Kbps to 2.4 Mbps. WCDMA and used before sending the image. As can be CDMA 1xEV-DO are the 3G technologies. Wireless data network speeds for a range of tech- seen with T1 network speed, a MRI image nologies are shown in Table 4. can be sent from one place to another in split seconds. Table 4. Public Wireless Network Speed Evolution A complete medical image exam for a single Technology Peak Network Speed patient is a collection of many images/ GSM (Global System for Mobile Communications) 7.1 Mbps slices. The radiologist needs to study all these images together to diagnose the GPRS (Global Packet Radio System) 1.5 Mbps problem. Average number of images required EDGE (Enhanced Data in GSM Environment) 1.5 Mbps for a Radiograph study, CT study and MRI WCDMA(Wideband Code Division Multiple Access) 1 Mbps study are shown in Table 2. Also shown here CDMA (Wideband Code Division Multiple Access) 1xRTT 640 Kbps are the numbers of exams transferred in a CDMA (Wideband Code Division Multiple Access) 2000 1xEV-DO 256 Kbps

14 ologist can review images from a remote Figure 1. Unified High Speed Public Network database independent of time and place. It’s all coming together – the Wi-Fi high speed wireless access, 3G cellular network and the high speed Internet/Intranet with xDSL speeds. This network will be trans- parent to the user as he/she may 3G Cellular High Speed Wi-Fi Image establish a cost-effective high speed Network Internet/PSTN Database connection from a wire line access point or a wireless access point. Within the context of medical images, a radiologist can review images from a remote database inde- pendent of time and place. Developments in medical imaging technolo- Wi-Fi hot spots are being created in all offer up to 56 Kbps and 3G is expected to gies and high speed public networks are public places, such as cafes, airports, train support 384 Kbps to 2.4 Mbps. helping the medical industry to create stations and public parks. Wi-Fi is a stan- With a Wi-Fi card in the radiologist’s many new business models to read dard for wireless local area networks mobile computer a high speed connection medical images for the benefit of: (LANs). Wireless LANs allow users within can be established from any publicly ͷ On-call radiologists their area of coverage to connect to fixed located hot spot. The issues of security ͷ Referring physicians networks without the need for cables. They need to be addressed appropriately ͷ Specialists employ electromagnetic waves to transmit before using this service. ͷ Off-site radiologists and receive data over the air from a ͷ Clinicians network access point (base station). Future ͷ Departments outside of radiology Short for “Wireless Fidelity”, Wi-Fi is actually Figure 1 captures a vision of an evolving ͷ Patients the common term for the IEEE (Institute of high speed public network. It’s all coming Electrical and Electronic Engineers) 802.11b A promising future is unfolding in the together-- the Wi-Fi high speed wireless delivery of new healthcare services using specifications, also referred to as “Wireless access, 3G cellular network and the high Ethernet” and “WLAN”. It provides a range high speed telecommunication networks. speed Internet/Intranet with xDSL speeds. A lot has been achieved and a lot more of approximately 100m (300 feet) and data This network will be transparent to the user transmission speeds of up to 11 Mbps over has yet to be realized for improving the as he/she may establish a cost-effective quality-of-health for many. the 2.4 GHz band. To put it into context, the high speed connection from a wire line Jagdish Kohli is an independent Healthcare and average wired Ethernet network provides access point or a wireless access point. speeds of 10 Mbps; traditional 56k modems Information Technology consultant. He can be Within the context of medical images, a radi- reached at [email protected]. UPDATE SBC E-Services Helps Bankers Solution could be accessed, backed-up and restored Integration Group Power OnLine A team of SBC E-Services experts evaluated on-demand with guaranteed service levels. Banker’s Integration Group’s needs and The SBC PremierSERV SAN infrastructure is Financing Database recommended SBC PremierSERVSM Data fully fiber-based, providing for disk-on- Bankers Integration Group, a California- Center Hosting and Storage Area Network demand services with high-scalability and based application service provider to the (SAN) services to enhance the company’s availability, and tape-backup services that finance and insurance industries, has a operations as an application service provider offer superior performance and reliability. patent pending software engine, BIGFNI, in the finance and insurance industries. Result which is a web-based risk analysis engine First, Bankers Integration Group’s primary that provides automobile dealers with a data site was relocated to the SBC As a result, Bankers Integration Group has powerful tool for pre-screening loan applica- Internet Data Center in Irvine, California to been given new opportunities to augment or tions and matching them to lender provide additional reliability and stability to replace in-house data storage or establish programs, ensuring that consumers are BIGFNI’s users. off-site data repositories for disaster- offered the best financing available to them. recovery and business continuity purposes. Next, a backup site was established at the The data that the BIGFNI software SBC Internet Data Center in Dallas, Texas. “After an exhaustive review, our technical compiles is sensitive, and Bankers SBC Internet Data Centers offer a wide team determined that SBC had the most Integration Group wanted to take extra range of transport capabilities connected advanced data centers in the country, precautions to ensure the data was directly to an OC-192 Internet backbone to providing the highest level of reliability, stored, backed-up and available for restora- provide fast access to hosted servers. security and technical expertise in the tion on demand through a secure These facilities are designed with redun- industry,” said Ted Cunningham, vice environment. Further, the company wanted dant power supplies, fire protection, and chairman of Bankers Integration Group. the data storage facility located away from environmental controls to provide a high “As an application services provider in the Bankers Integration Group main facility, level of reliability. the finance industry, we are particularly concerned with security and reliability in case of disaster at the main facility. Finally, Bankers Integration Group was issues. SBC Internet Data Centers were Bankers Integration Group turned to SBC connected with SBC PremierSERV Storage designed from the ground up with these E-Services for a solution. Area Networking (SAN) capabilities so data issues in mind.”

15 Progress Report On Major won several major contracts. Among the hundreds of initiatives under Growth Strategies With strong customer relationships and way, the company is reducing its number of nearly half of the Fortune 500 companies call centers by about one-third by standard- SBC Communications Inc. outlined a broad located within its core 13-state footprint, izing technologies and processes. And in range of marketing, customer service and SBC companies are well positioned to the SBC network center operations, the productivity initiatives designed to compete for this business. Large busi- company expects to substantially reduce strengthen its competitive position and drive nesses with more than 50 percent of their its roughly 500 locations – down from 600 growth. The company reported that major locations within the SBC 13-state area a year and a half ago – and create a more growth initiatives – including its recent spend an estimated $34 billion a year on efficient, uniform system with a consistent Midwest long distance launches, expansion telecom services. national approach to service. Productivity in national data and enterprise markets, its improvement initiatives that are underway plan to launch bundled SBC DISH TV video Cingular®Wireless today are expected to save the company services in early 2004 and Cingular® Cingular®Wireless has accelerated an additional $1.3 billion annually in Wireless’ national GSM/GPRS network subscriber growth over the past three quar- expenses and capital costs by 2006. conversion – are all on or ahead of schedule. ters and has made a number of moves to Over the last two years, the company’s SBC Communications is updating and stan- strengthen its competitive profile. total work force has declined by 28,000 dardizing systems at its call centers and Its network conversion to the GSM/GPRS employees. SBC companies expect the network service centers over the next two industry standard – now 92 percent pace of companywide staffing reductions years to further enhance customer service, complete across Cingular’s existing going forward to accelerate from recent simplify operations and increase productivity. geographic footprint – is ahead of schedule quarters, mainly through attrition. “We have come through a tough period for and should be completed in 2004. In addi- 2004 Outlook our company and the industry,” SBC tion, through roaming agreements, Cingular Chairman and CEO Edward E. Whitacre Jr. expects GSM coverage to reach 90 percent Whitacre said effective marketplace execu- said during a company-sponsored confer- of the nation’s population by the end of this tion and disciplined cost management will ence. “We have many sizable year and 95 percent by the end of 2004. be hallmarks for 2004. “We are confident opportunities ahead, and I am optimistic Currently, 40 percent of Cingular customers that as we move forward we will see and confident about our ability to execute have GSM-enabled handsets. revenue trends stabilize, leading to positive on behalf of our owners.” growth in revenues, including proportionate The company will also further strengthen results from Cingular, by the end of next Gaining long distance freedom in the final its competitive position through its year,” he said. five SBC states was a major milestone, pending NextWave Telecom spectrum Whitacre said, because it provides oppor- acquisition, which covers 34 markets and For 2004, the company expects: tunities for new long distance revenues, a population of more than 83 million. This ͷ Continued growth in DSL net adds. helps drive access line retention and purchase, which is expected to close in ͷ Consumer retail long distance penetration winback, and gives SBC companies much the first half of 2004, will increase of more than 40 percent companywide by greater traction in the national data and Cingular’s average spectrum in its top 100 year end. enterprise business markets. markets from 30.3 MHz to 34.5 MHz, ͷ Strong access-line performance in the Midwest – similar to trends in the “Our initial entry into the Midwestern long increasing its network capacity. Southwest and West following long distance market several weeks ago has In less than a year, Cingular has moved distance launches. been very successful, with early sales from a distant fifth in subscriber growth to ͷ A capital spending program of approxi- February 2004 figures outpacing our initial growth rates in a strong second, with a net subscriber other states,” Whitacre said. “Being able gain of 745,000 in the third quarter. Today, mately $5 billion. to offer long distance in a bundle with Cingular’s network serves 23.4 million Whitacre said SBC marketing initiatives will local, DSL, wireless and soon satellite TV – cellular/PCS subscribers, with licenses continue to impact margins in the near in all of our markets – gives us great sales reaching a population of 236 million term. But with improving revenues and momentum heading into 2004.” across the United States. access-line retention trends – combined with ongoing cost reductions – the Business Markets Major drivers of Cingular’s subscriber growth include its quality service, nationwide company expects margins to stabilize by While SBC companies have strong existing coverage and broad distribution. Cingular the end of 2004, he said. local relationships with many businesses, has 86,000 retail points of presence Cautionary Language Concerning Forward- long distance freedom, combined with the across the United States, complemented by Looking Statements addition of new capabilities and infrastruc- the sales channels of its parent companies’ Information set forth in this news release ture, has improved the company’s competitive wireline operations. position in the national business market. contains financial estimates and other Productivity, Service and Cost Reductions forward-looking statements that are subject The SBC IP backbone and out-of-region to risks and uncertainties. A discussion of networks – which reach more than 30 While they execute new marketing initia- factors that may affect future results is major metropolitan markets outside the tives, SBC companies also are investing in contained in SBC’s filings with the company’s traditional service area – are up technology and resources to enhance Securities and Exchange Commission. SBC and running. The company has built a customer service, improve productivity, and disclaims any obligation to update or revise national sales force focused on the large- reduce costs. The goal of these initiatives statements contained in this news release business market. In addition, products and is to simplify operations by standardizing based on new information or otherwise. customer-care capabilities are being added technology, migrating to national platforms to help drive new large-business growth and automating various functions. opportunities. The company has already

16 SBC Long Distance Expands Helping Businesses Protect President for Security Products and International Portfolio With Themselves From Internet Infrastructure Software. India 60 Plus Viruses, Worms & Hackers “To date, this market – which can be espe- cially vulnerable, due to their lack of resour- SBC Long Distance added a new interna- As Internet viruses, worms and other ces and security expertise – has had little tional calling plan to its growing portfolio security breaches threaten business help, as most information security service that provides rock-bottom rates to specific networks with increasing frequency and providers focus on larger companies.” regions of the world. For a flat monthly rate severity, affiliates of SBC Companies are With SAE, SBC consultants scan up to 100 of $14.95, India 60 Plus allows callers more delivering a new consulting service to help public Internet addresses for vulnerabili- time to talk with faraway family and friends potentially vulnerable small- and medium- ties, which are weaknesses in the with per minute rates as low 25 cents when sized businesses protect their communica- business’ IT systems that might allow all minutes are used. Additional minutes are tions services and critical data. unauthorized activity, such as hacking. billed at just 26 cents per minute. SBC companies have introduced the SBC SBC consultants also review one router “Staying in touch with family and friends is PremierSERVSM Security Architecture Evalua- and one firewall, looking for policy and more affordable than ever before,” said Jeff tion (SAE) service, an offering designed configuration issues that might compro- Urbanek, executive director of consumer specifically to help smaller companies iden- mise the security of a business network. marketing for SBC Long Distance. “SBC tify and address a range of network The SBC SAE service also helps to secure Long Distance continues to develop exciting security challenges. The service provides a a small- or mid-sized business’ intellectual new products for individual countries and cost-effective means to identify vulnerabili- property and business operations. It regions that help our customers get the ties to a business’ network infrastructure provides improved awareness of security most for their dollar.” and to develop corrective actions that fit a threats and the current exposure of a busi- company’s specific business requirements This new international “block of time” plan ness customer’s information assets to and security needs. The service includes a covers direct-dialed calls from the U.S. to those threats. The assessment yields technical assessment of the company’s India and Pakistan and joins other plans information designed to allow a business network perimeter as well as staff inter- such as Middle East 60 (for calls to Oman, to better protect its information assets views designed to evaluate the state of its Syria, Bahrain, Israel, Jordan, Kuwait, Leba- and identifies existing information assets, information security program. non, Palestinian Authority, Saudi Arabia, security controls, and vulnerabilities. Turkey, United Arab Emirates, Iran, Qatar The small- and medium-sized business In addition, SBC companies introduced the and Yemen); AsiaSaver 100 (for calls to market traditionally has been underserved SBC Vulnerability Scanning Service (VSS), Hong Kong, Singapore, South Korea, in terms of security consulting services. an affordable solution for businesses Taiwan, Japan, Malaysia, Indonesia and This, combined with the fact that many wanting to assess the security of their China); and EuroSaver 180 Plus (for calls to smaller companies lack in-house IT external-facing networks. The SBC VSS Austria, Monaco, Belgium, Netherlands, expertise, can result in higher levels of complements other current SBC Managed Denmark, Norway, Finland, Poland, France, vulnerability to attacks by viruses, worms, Security Service offerings, and provides Portugal, Germany, Spain, Ireland, Sweden, and hackers. the business customer with specific Italy, Switzerland, Liechtenstein, United

“With the recent spate of viruses and reports of any vulnerabilities that were UPDATE Kingdom Luxembourg, Andora, Greece, San worms like LoveSan, SoBig, and Blaster, found as well as recommendations on how Marino & Hungary). many small businesses are in desperate to mitigate them. If you would like more information on SBC need of professionals to help them protect Opinions expressed in UPDATE are not neces- international plans, please contact your themselves to ensure their operations are sarily those of the SBC companies. Liaison Manager at 1-800-552-5299. not disrupted from such attacks,” said Chris Christiansen, IDC’s Program Vice

Webwatch SBC Companies – Celebrating 126 Years of Service www.thefuturefaster.com Check out this website, created by the U.S. Telecom Association, which repre- sents more than 1,200 of the nation’s telecom companies. Travel Alternatives For Efficiency & Savings Call 1-800-266-3373 for information on the 1-800-CONFERENCE®suite of confer- encing and collaboration services that offer outstanding travel alternatives and savings for businesses. Ringing The Bell Several SBC employees joined Chairman and CEO Ed Whitacre in ringing the opening bell at the New York Stock Exchange Nov. 13th in observance of SBC’s 20th Anniversary of being listed on the prestigious exchange. Photos courtesy of SBC Archives and History Center, San Antonio, Texas

17 Cassandra Jessie-Johnson Editor’s Note: Introducing A New UPDATE Column Designed For You, Our Valued Reader – Cassandra DSL Data News If customers would like to take a tour of the Jessie-Johnson recently moved to a new position in SBC Yahoo! product, you can refer them to: SBC Central Sales Operations & we asked her to Happy New Year! http://www02.sbc.com/DSL_new/content/1,,78,00.html continue her great reporting by creating an 2003 was a phenomenal “Highlights Across the Regions” column, since year for us and telecom New Upstream Speeds many of our consultants and other business users. We introduced many The availability of the new speeds is contin- readers have clients or work in other areas outside enhancements to the DSL gent upon the distance, called loop length, California and Nevada. Her new column will be product portfolio and made a few changes from the customers’ location to the Central expanded as other correspondents contribute in to benefit your customers, including reducing Office or Remote Terminal (RT). The guaran- the months ahead. Your Success is Our Mission! the monthly rate of the SBC Yahoo! DSL teed speed is the minimum speed in the Basic Package to $39.95/month, launching speed range selected. Actual throughput Highlights Across The Regions the SBC Yahoo! DSL Symmetric 384-S speeds will vary due to Internet congestion SBC Long Distance Package, the SBC Yahoo! DSL Basic – and other factors associated with the Now that SBC Long Distance is available S Package (static) and the SBC Yahoo! DSL Network or the customer’s computer. For in the Midwest, it can provide Long Expert Plus (dynamic) options, and adjusting more information on either of these two Distance service in all 13 states. Sales the shipping and handling charge, just to new SBC Yahoo! DSL Packages, call your have surpassed targets and the Midwest name a few. There were some low points Unique Services Center South Consultant business group had the most successful due to a continually weakening economy, Queue today at 1-866-234-4DSL (4375). long-distance launch in SBC’s history! however, you helped us bend the trend. Our Steeper Discounts and more… DSL market share continued to increase 1-800-CONFERENCE®– Just got Simpler! month-over-month. In the second quarter of On the horizon for the second quarter, we’ll Customers now will receive one great 2003, we grew 304,000 DSL lines. We also have another great way to sell SBC Yahoo! service for one simple rate. Effective late ended the year with SBC Long Distance DSL – bundled with our Shared Web November 2003, 1-800-CONFERENCE® available in all 13 states. Hosting product. Together the two are Bridging charges and Long Distance charges called Web Advantage (formerly known as We said “Yahoo”… for customers were combined and billed Online Office). Promote e-commerce, web- into one single rate – making it simpler for At the close of 2002, all of our existing hosting by SBC to your business customers customers to understand their charges. legacy SBC Internet Services’ DSL that would like an online presence as well customers were able to migrate to the SBC as an opportunity to increase their online Avaya IP Office available now in Southern Yahoo! Portal via a download URL. At the revenue. One-stop-shop all at SBC! New England Telephone territory end of 2003, the SBC Yahoo! Business Avaya IP Office is a total communications Portal was launched! This enabled your Best in Class solution for small and medium businesses. customers to become more competitive SBC Communications has exemplified IP Office is designed for customers with 2 to and improve business productivity. The industry leadership by expanding the avail- 60 stations with expansion capability of up to Business Portal included customized serv- ability of DSL Internet access service to 256 stations. Customers can set up IP Office ices for the business client. more than 32 million customer locations as a traditional Key/PBX, or as an IP teleph- across its footprint. To date, SBC has over Of all of the new features and enhance- ony server, or a combination of both. It is a ments, the most popular proved to be the 3 million DSL subscribers, with nearly

February 2004 business applications suite with a full contact 2,020 Remote Terminals (RTs) and over expanded parental controls for residential center, a voice communication solution, and 11,960 Distribution Areas (DAs) ready for customers, as well as and the email safety a data communications solution – “all in service, in ASI West and SBC California and security tools for residential and busi- one”. It offers full voice functionality with a and Nevada. For more information, to ness customers. SBC Yahoo! DSL and Dial comprehensive list of features and benefits qualify your customers for SBC Yahoo! DSL subscribers automatically received new anti- that can help a small company succeed and Internet Service, as well as to order the spam, e-mail protection services, Address- grow. Avaya IP Office will also be available in service for your clients, contact the Unique Guard™ and SpamGuard Plus as part of the Southwest region soon. their current service. Your customers told us Services Center South Consultant Queue that safety, security, and privacy were impor- at 1-866-234-4DSL (4375). Tidbits tant and we listened. Now your customers Cassandra Jessie-Johnson is Associate Director, Business Did you know that nearly 50 percent of have more control in protecting their inboxes. Processes Team, SBC Sales Operations-Central Fortune 500 companies are headquartered in our 13-state footprint? Rates at-a-glance for SBC Yahoo! DSL Internet service with enhanced upstream speeds Product Name Speed (downstream x upstream) Loop Length Rack Rate Yahoo! DSL Basic Package Up to 384Kbps x 128 – 256Kbps 16K ft $39.95/mo Yahoo! DSL Basic – S Package Up to 384Kbps x 128 – 256Kbps 16K ft $54.95/mo Yahoo! DSL Standard Plus Package 384Kbps – 1536Kbps x 128 – 256Kbps 12K ft $49.95/mo Yahoo! DSL Standard Plus – S Package 384Kbps – 1536Kbps x 128 – 256Kbps 12K ft $64.95/mo Yahoo! DSL Deluxe Package 768Kbps – 1536Kbps x 256 – 384 Kbps 9K ft $59.95/mo Yahoo! DSL Deluxe – S Package 768Kbps – 1536Kbps x 256 – 384 Kbps 9K ft $79.95/mo Yahoo! DSL Symmetric 384 – S Pkg 384 – 416 Kbps x 384 – 416Kbps 12.5K ft $119.95/mo Yahoo! DSL Expert Plus Package 1.5Mbps – 6016Kbps x 384 – 608Kbps 7.5K ft $139.95/mo Yahoo! DSL Expert Plus – S Package 1.5Mbps – 6016Kbps x 384 – 608Kbps 7.5K ft $159.95/mo

18 SBC West Restores Network & Cingular® Donates Phones proactively notify individuals quickly with Aids People After Devastating important information. SBC Crisis Alert Cingular®Wireless donated 1,100 phones – Management System gives the capability Southern California Fires each including $500 of prepaid airtime – of reaching people via a variety of chan- to the Southern California Evacuation nels, including the Internet, wireless Over One Million Feet of Fiber and Copper Centers and the American Red Cross devices, or conventional telephone equip- and More Than 900 Telephone Poles Were chapters in the regions of the fires. ment. CAMS is hosted out of a secure Lost in Flames datacenter with redundant and dedicated The series of fires from San Diego to San Features Made Available Without Cost To servers. SBC Crisis Alert Management Bernardino to Los Angeles last year Displaced Consumers & Businesses System provides the following features: ͷ damaged the outside telecom plant network SBC West made these features available Variable notification methods – Various like nothing in history. “In a matter of days, free of charge for displaced consumers and notification methods of telephone, we were replacing a network that took many businesses (for a certain length of time): cellular phone, numeric pager, e-mail to RIM devices, e-mail to alpha pagers. years to construct,” said Chuck Smith, presi- ͷ Call Forwarding, which automatically Distribution methods provide notifica- dent and chief executive officer for SBC forwards calls to any phone number fire tion to users wherever they may be West. Smith said he is proud of the fact that victims choose. located in the world by their individual despite the loss of commercial power at ͷ Remote Access To Call Forwarding, which methods of choice. several central offices for a period of several allows fire victims to dial in and direct ͷ Highly reliable, trackable system – CAMS days, “our switches continued to process normal home phone calls to another allows notification to take place by calls, thanks to back-up power sources engi- number from any phone. several means. Dedicated, redundant neered into the network. ͷ The Message Center (for residential servers further enhances reliability. Also, customers) or SBC Voice Mail (for busi- “Our back-up power systems operated the ability to track who has and has not ness customers), which allows fire victims flawlessly, just as they are designed to do. received notification allows organizations to retrieve messages left at their home We never lost a central office but our to then target select groups that need phone from any location as well as leave a biggest advantage was the ‘can-do, get it further effort to reach. done’ attitude of our employees. As entire greeting telling callers their status. If you would like more information on communities suffered from the shock, these Emergency Services, please contact thousands of our Southern California Emergency Services That SBC Companies your Liaison Manager at 1-800-552-5299. employees came to work to serve our Can Provide: customers.” (Some were even employees SBC Intellicast Target Notification Service for Lowayne Shieh who had lost their homes in the fires.) Government Customers Liaison Manager [email protected] SBC Intellicast Target Notification Service SBC West People Help The Community augments other emergency warning Alcatel Selected For Numerous employees, including the systems by quickly telephoning targeted Fiber-to-the-Premises Initiative Telephone Pioneers, helped out fire victims areas with a specific warning message. in a variety of ways, from donating money IntelliCast combines a telephone number Lab testing and field trials planned for 2004 UPDATE to giving blood to collecting food and database (e.g. 9-1-1 database or other SBC Communications Inc. has announced clothes. Even the SBC Consultant/Vendor telephone number and address listing a four-year primary supplier agreement Sale Group that produces this publication data.), x,y coordinate geographic routing with Alcatel for the SBC Fiber-to-the- helped make a difference. Liaison database, and outbound calling. Premises (FTTP) initiative. The agreement Manager Lowayne Shieh was contacted by IntelliCast utilizes the coordinate routing will enable SBC Communications to move Michael Lakin, National Sales Manager of database to generate telephone number forward with further lab testing and field ADTRAN, who lives near the fire area in extracts for specified areas, which define trials, which are the next steps in devel- San Diego. He and his wife, Lesa, wanted an emergency event. Emergency event oping and finalizing potential use for this to know what could be done to help folks boundaries may be either pre-planned (as next-generation network technology. in the Crest area of San Diego County. in the case of a flood zone) or “drawn” in Ultimately, FTTP deployment will depend After Lowayne and other CVSG members real time (such as a chemical fire with on results of the final lab testing and assisted, Michael sent her the following toxic plume). The telephone numbers are field trials, as well as clarification of any email: “Lesa just arrived home with then extracted and outbound calling begins regulatory guidelines that would apply to wonderful stories from her day at Crest with the dialing of the telephone numbers FTTP networks. Elementary. She cannot say enough great extracted from the event boundaries and FTTP is a promising technology that could things about you, SBC and Cingular. You delivering a voice message notification provide a foundation for next-generation really made a difference for many families generated by the customer. Outbound broadband networks, capable of providing who lost everything in the Cedar Fire in calling will provide a maximum capacity of nearly limitless voice, video and data Crest. She and her friends were able to 1,132 simultaneous calls, initially. bandwidth for consumers and small busi- post signs around the area regarding how This product is supported by your Region’s nesses. The technology is capable of to contact SBC for assistance. The school E911 Teams. supporting a number of emerging and really appreciated the cell phones and evolving applications, such as interactive support from Cingular®Wireless and SBC SBC Crisis Alert Management System (CAMS) gaming, photo sharing, PC backup and West. Please tell everyone that they really SBC Crisis Alert Management System telecommuting, along with video confer- made a difference!” (CAMS) is an integrated, web-based solu- encing, premises surveillance, and other tion that enables organizations to novel video services, which could be deliv- ered on demand and in high-definition.

19 Don’t Miss Feb. 18th Live News SBC Streaming Happy New Year from the CVSG! Media Broadcast 9:00 – 11:30am PST Hear the Latest on – Wi-Fi and SBC FreedomLinkSM Service – Promotions and Fast Launch Programs – National Data Strategy

You can attend in person by reserving your seat today:

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To be a Streamer over the Internet go to: webevents.broadcast.com/sbc/79674 at least 20 minutes before the broadcast.

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SBC CVSG Resources For You 1. Website: sbc.com/cvsg 4. Breaking News on CVSG Listserver 2. Bell Advantage (Password-Restricted) 5. SBC Streaming Media News Broadcasts over the Internet 3. CVSG Hotline – 1.800.552.5299 (Call your Liaison Manager to get a Password to Bell Advantage or subscribe to Listserver or UPDATE and to attend Broadcasts in person or via the Internet.)

SBC Consultant/Vendor Sales Group Toll-Free Hotline 1.800.552.5299 (for any other number, toll charges may apply.)

Kari Aguinaldo Tom David Bree Nimitsilpa

CVSG Leader Liaison Manager Liaison Manager 415.542.4516 949.855.5055 415.542.1071 e-mail: [email protected] Fax: 949.348.2941 Fax: 415.542.2648 370 Third Street, Room 711, San Francisco 94107 e-mail: [email protected] e-mail:[email protected] 27402 Camino Capistrano, Room 211, Laguna Niguel 92677 370 Third Street, Room 711, San Francisco 94107 Helps Consultants and Vendors in the following area codes: Helps Consultants and Vendors in the following area codes: 619, 714, 760, 858, 909, 949 209, 408, 415, 510, 559, 650, 707, 831, 916, 925

Lowayne Shieh Craig MacDonald Eric Aguirre

Liaison Manager Editor/Communications/Seminars/Conferences Data Administrator 626.576.3045 714.284.2370 e-mail: [email protected] Fax: 626.576.5081 Fax: 714.563.1736 e-mail: [email protected] e-mail: [email protected] 500 E. Main Street, Room 540, Alhambra 91801 200 Center Street Promenade, Room 100, Anaheim 92805 Helps Consultants and Vendors in the following area codes: Thank You for reading 213, 310, 323, 562, 626, 661, 805, 818 Graphic Design Jessica Becker/Sergey Chichkin UPDATE Creative Graphics & Advertising 312.727.1559 e-mail: [email protected]