May 2005 Robin MacGillivray, BCS President, SBC West We know you and your clients want the most innovative, integrated, reliable, efficient telecom solutions provided by a trusted partner. That’s why I’m so excited about our new SBC UPDATE PremierSERV Hosted IP Communications Service (HIPCS). It’s a fully-hosted VoIP solution Solutions for Success that provides superior features, web-based applications and flexible, end-user control. Consultant/Vendor Sales Group Here’s a closer look at HIPCS:

Valuable Resources On Security see P. 1 0 Paul Bedell, SBC Product Management Telecom Fraud. What Can You Do? see P. 1 4 >SBC Hosted IP Communication Service Upgraded What Time Is It In Tokyo? see P. 1 7 Though Voice over IP (VoIP) has been around since the late 1990s, Changes & Helpful Tips see P. 1 8 interest and acceptance of the technology has been driven by the attractive cost efficiencies that many companies can achieve by Highlights Across Regions see P. 1 9 using a single IP network to support both data and voice. But service and feature parity with competing and legacy technologies is New Billing Labels Recommended see P. 2 0 a key requirement as well, along with cost. Customers will not accept voice quality (or service) that is inferior to what they are used Pop Quiz see P. 2 0 to with a Centrex, PBX or Key system. Latency has improved markedly, allowing VoIP networks to deliver voice quality that’s comparable to traditional circuit-switched systems. Kent Mathy, President-Business, Cingular® Wireless Critical to success of VoIP is the ability to deploy backward Cingular Gets Down to Business compatible or value-added services – ideally both. For example, a > service provider can deploy a VoIP system that allows end users The merger of AT&T Wireless with Cingular® within the same company to seamlessly call Centrex or TDM PBX Wireless is barely a few months old but it has users in the same company, and vice versa, or a service provider already yielded significant benefits for the can deploy a unified messaging (UM) system that allows all type customers of the new Cingular. These include: of messages (e-mail, voice mail and fax) to be accessed and access to the largest digital wireless voice and data network in the U.S., as well as to the fastest managed through e-mail systems. national wireless data network in the country – EDGE; through exten- continued on pg. 2 sive roaming agreements one of the largest international voice and data footprints among U.S. carriers; a better than 48-million-strong, mobile-to-mobile calling community; and a slew of new, cutting edge devices that are available exclusively to Cingular customers. Kari’s Korner Business customers in particular are reaping immediate benefits from the combination of AT&T Wireless and Cingular Wireless. Shortly >WOW, UNBELIEVABLE, INCREDIBLE! after the merger closed in October 2004, Cingular announced a It seems every time you pick up a paper, listen to dramatic change in its approach to the business-to-business market- a radio station, watch TV, see a movie trailer, talk place through the formation of the Business Markets Group. to a friend or even drive on the freeway – you end continued on pg. 4 up seeing or hearing something absolutely amazing about the incredible business we just happen to be in. And much of this sensational Inside news on the evolving industry, humdinger products or magnificent Wi-Fi Service In World’s Tallest Building ...... pg. 4 new technologies have acronyms that folks are already using The Evolving Demand For Mobile Data Access ...... pg. 5 (several “new terms” are looked at in this issue). Fortunately, our The New Age Of Cell Phones ...... pg. 6 UPDATE team examines the meaning of them, what they’re all about SBC U-verseSM Experience ...... pg. 8 Contract With Walgreen Co...... pg. 8 and how they will impact your business and your client’s business; SBC, AT&T Begin Merger Approval Process...... pg. 9 how they will make your professional and personal lives more effi- Joint Venture With 2Wire Inc...... pg. 11 cient, more productive, more mobile and hopefully more fun. Data With David: DSL Growth ...... pg. 12 SBC-HP Strategic Alliance...... pg. 13 Your Success is Our Business. We want you and your clients to SBC Executive News...... pg. 16 have your best year ever! Contract Group Update ...... pg. 16 Music & Mobiles ...... pg. 16 415.542.4516 Wireless Internet Access To Be Available in State Parks ...... pg. 17 [email protected] SBC California Out-of-Franchise Expansion Update ...... pg. 18 Kari Aguinaldo Five-Year Optical Networking Contract With KeyCorp ...... pg. 18 Highlights Across The Regions ...... pg. 19 CVSG Leader Wi-Fi Agreements Will Expand Roaming Footprints ...... pg. 19 Continued from page 1 Signaling formed to a digital, packet signal, all of SBC HIPCS UPGRADED Signaling is the way that devices communi- which are governed by various standards. Why VoIP? cate within a network, activating and The process of conversion is complex and VoIP technology offers several key benefits: coordinating the various components beyond the scope of this article. Suffice it 1. The cost-effectiveness of supporting VoIP needed to complete a call. to say that most of the conversions are is evident when an organization can gain based on pulse coded modulation (PCM) or In a PSTN network, a phone number or variations. Each encoding scheme has its efficiencies by only having to support a station line communicates with a Class 5 single TCP/IP-based network infrastruc- own history and merit, along with its partic- switch or traditional digital private branch ular bandwidth needs. ture. By using a single packet-switched exchange (PBX) for call connection and call network, as opposed to having to routing purposes. The output from a CODEC is a data stream manage both packet and circuit-switched that is put into IP packets and transported networks, organizations can reduce their In a VoIP network, signaling is accomplished across the IP network to an endpoint. by the exchange of IP datagram messages maintenance and management costs. These endpoints must use the same stan- between the VoIP components. The format of The same technical personnel are able dards, as well as a common set of CODEC these messages may be dictated by any to maintain both voice and data systems parameters. If two endpoints use different number of standard protocols, which are instead of requiring network personnel standards or parameters then the commu- covered briefly later in this article. with different areas of expertise. nication will be unintelligible. 2. This convergence of voice and data Database Services networks onto a single IP network can Database services are a way to locate an VoIP Network Components provide some inherent flexibility, for endpoint and translate the addressing that The major components of a VoIP network, example, the organization can easily add, two (usually heterogeneous) networks use. A while different in approach, deliver, as it change or remove nodes (e.g. phones) call control database known as a softswitch relates to voice transmission, very similar on the network. This allows the organiza- contains these mappings and translations. functionality to that of the PSTN, which tion to easily deploy and then redeploy Another important database feature is the enable VoIP networks to perform much of equipment to maximize its investments, generation of transaction reports for billing the same tasks performed by the PSTN. The without having to do a truck roll or purposes. Additional logic can be employed one additional component is that VoIP requiring a technician to be on-site to to provide network security, such as denying a networks must contain a gateway compo- manage MAC (move, add, change) work. specific endpoint from making overseas calls. nent that enables VoIP calls to be sent to This functionality, coupled with call state the PSTN, and visa versa when appropriate. 3. Finally, VoIP promises to deliver many new control, coordinates the activities of the This essentially means that there must be a features, such as advanced call routing, elements in the network. way to convert the IP-based part of a conver- computer integration, unified messaging, sation to traditional TDM format. There are integrated information services, on-net The PSTN uses phone numbers to identify four major components to a VoIP network. calling between customers, and encryption. endpoints. A VoIP network uses an IP address ͷ Call Processing Servers (Softswitch, An example of such advanced features is and port number to identify an endpoint. Feature Servers, Media Servers) the “follow-me” feature with which a person Call Connect and Disconnect (Bearer Control) ͷ End-User Devices (IP Phones, Soft can be reached at their station number, A “bearer path” is the physical path, or route, Phones, ATAs) whether telecommuting from their Lake that is used to transport an IP communica- ͷ Media/VOIP Gateways Tahoe cabin, staying in a hotel abroad, or tions session. The connection of a call is

May 2005 May ͷ IP network sitting at the desk in their office. Because made by two endpoints opening a communi- of the common network infrastructure, it is cation session between one another. In the Things That Impact VoIP Networks also possible to integrate other media PSTN, the public (or private) switch connects Here are some of the issues an organiza- services, like video or even electronic white logical (Digital Signal) DS-0 channels through tion must carefully consider when deploying boards, to name a few. Another feature the network to complete the calls. VoIP solutions, such as traffic parameters would be the integration of VoIP with In a VoIP network, this connection is an and network design. Without such due dili- customer relationship management (CRM) audio voice stream transported in real time. gence, an organization could be faced with software. Caller ID or dialed numbers could This connection is the bearer channel and service that does not function reliably or is be linked to a customer’s record, which represents the voice content being deliv- severely degraded. Significant considera- automatically opens on the desktop when ered. When a communication is complete, tions are as follows: ͷ the salesperson receives or places a call. the IP sessions are released and network Latency resources are freed up. ͷ Jitter VoIP Network Functions and Components ͷ Bandwidth CODEC Operations It’s important to understand the basic func- ͷ Packet loss Traditional voice communication is analog, tions of VoIP technology, particularly as they ͷ Reliability while data networking is digital. As a result, compare to legacy Centrex, PBX and key ͷ the IP network needs a way to be able to Security systems. As mentioned above, to enable convert the voice into a format that it can SBC PremierSERV Hosted IP Communications Service organizations to adopt VoIP as a viable transport. Since the PSTN is most often SBC PremierSERV Hosted IP Communication solution, its components must be able to analog, conversion is not necessary, Service (HIPCS) is a hosted, managed IP perform functions that are comparable or however, for VoIP, it is necessary to “packe- business service based on IP softswitch tech- similar to the PSTN network. These are: tize” the voice signal. The process of nology. In addition to the advanced ͷ Signaling converting analog waveforms to digital infor- functionality offered by HIPCS, HIPCS service ͷ Database Services mation is done with a coder-decoder also includes feature functionality, call ͷ Call Connect and Disconnect (bearer control) (CODEC, which is also known as a voice controls and operation that are typically ͷ CODEC Operations. (This includes use of coder-decoder [VOCODER]). There are many offered by traditional telecommunications analog telephone adapters [ATAs]) ways an analog voice signal can be trans- systems. Many applications and end user

2 controls are delivered via a web-browser inter- mailbox) is offered with the Basic Service agent status. Customers can deploy up to 100 face. Working with the customer’s LAN, HIPCS package, along with “call forwarding” (aka: queues, with 200 agents assigned per queue. provides voice and data convergence, find me/follow me). Similar to voice mail, Call Reservation-less Audio Conferencing – enhanced providing the benefits of Voice over IP (VoIP) in One provides one mailbox for your Cingular with meeting management tools and basic and data transport functionality through one wireless and business phones, simplifying web conferencing, allows you to meet spon- hosted solution. the message retrieval process. Caller ID taneously with the people you need to reach Unlocking the full potential of HIPCS is as routing plans let users define several dispo- from around the globe. This service is simple as logging on to a personalized web sition status to their incoming calls, such as perfect for status meetings, training portal, which allows each user to manage “meeting,” “branch office,” or “left for the sessions, small ad-hoc meetings, and his or her communications in real-time day.” End users define call routing rules for employee orientations. Reservation-less using features such as “click to e-mail,” each status. You can route your calls to one Audio Conferences includes both audio and “click to dial,” “call forwarding,” call logs, of three destinations. If your call is unan- online options, and there is no set-up and the advanced functionality of unified swered after the last destination, it will then required, no need for special equipment and communications and instant conferencing. be sent to your HIPCS voice mail. Routing no need to book the conference in advance. rules can also be assigned for incoming calls Web Conferencing – allows you to hold real-time How Does HIPCS Work? when your office phone is busy. web-based meetings such as slide shows, SBC PremierSERV HIPCS uses ‘’softswitch’’ Complete Service – Includes everything in the product demos, and web tours with 1, 50 or technology to transmit calls over the SBC Basic Plus Service package, plus Unified up to 2,500 people – all at a moment’s private, secure, tier-one IP network. HIPCS Messaging (instead of Voice Mail), and Remote notice. To use the service, you simply need a functionality can be accessed from any Calling. Unified Messaging provides a single telephone and a PC with a web browser. SBC Internet connection, which means end users inbox for voicemail, e-mail and fax, and can Conferencing Services offer multiple web can be reached at the same number whether treat all messages the same as e-mail. Users conferencing solutions from basic to WebEx at their desk, in a conference room, or can store and forward voicemail in standard and Microsoft Office Live Meeting. working remotely across town or around the .wav format to anyone via the e-mail system. Overhead Paging – Similar to what’s offered with globe. All that’s needed is a web browser, The Unified Messaging capability would include PBX and Key Systems, overhead paging and an IP telephone (or an analog telephone integration with the SBC UC/EMS platform. allows for office employees to be paged by with an adaptor) at the user’s location. Remote calling includes Remote Instant Office overhead speaker. Especially handy in HIPCS Components which makes any phone a HIPCS IP endpoint – medical office environments, schools, ware- Like any other VoIP network, HIPCS contains giving users remote “virtual office” capabili- houses or other large offices. the following network components: ties. Remote and traveling employees can take ͷ IP connectivity, which is currently provided their HIPCS services with them wherever they Summary: Benefits Of HIPCS via Dedicated Internet Access circuits go. Users can set-up an “impromptu office” So why should businesses purchase HIPCS connecting to the SBCIS IP backbone. from any location where they can access the Service? What makes HIPCS better than a CPE- SBC offers several connectivity options Internet – broadband, direct-dial or wireless. based VoIP solution, or a TDM-based solution such as frame relay, multi-link frame relay, Remote workers have HIPCS features, such as a PBX, Key or Centrex system? There and ATM. Additional connectivity options including advanced features like click-to-call, are many answers to this question: are under development. customized call treatments, personal and 1. HIPCS doesn’t require a major, up-front ͷ IP End User Devices, such as IP phones company directories, from anywhere. This capital investment in CPE. There’s no and ATAs. capability extends single-number, single- requirement to buy a big “box” to make UPDATE ͷ Call Control Servers, such as the mailbox access to any remote office location. the system work. softswitch (SS), the Feature Server (FS), Customers can change their station 2. HIPCS offers service comparable to tradi- Media Servers (voice mail, UM, inter- packages when desired, through their pre- tional voice solutions, such as legacy cepts, recorded announcements), and assigned Operations Administrator (OA) PBX or Centrex solutions. conferencing servers. who accesses the end user’s station 3. Because a major on-site system isn’t ͷ Media/VoIP Gateways. Gateways have through the OA portal. required, technical personnel aren’t been deployed in strategically located Table 1 illustrates the HIPCS packages. required to maintain the system either. SBC central offices and collocation The customer-designated OA manages centers across the U.S. Optional HIPCS Features Call Tree – an auto-attendant, IVR function that the system, which is a relatively easy, HIPCS Station Packages allows a caller to access 3 levels and 7 intuitive responsibility. The following options are available with SBC options within each level, to gain access to 4. HIPCS offers the ability to converge both PremierSERV HIPCS: the appropriate department/employee. The data and voice onto a single network infra- Basic Service – includes traditional end user service also offers a Names Directory that is structure. This capability will help to lower calling features with personalized web portals built from the user directory which permits the customer’s telecom transport costs. at each station. Stations can be equipped dialing by last name or extension number and 5. HIPCS offers end users the ability and the with a variety of telephone sets, including IP can be configured to zero-out to an operator. flexibility to manage their service through sets, or other end-station terminals (some Call Center – offers Automatic Call Distribution access to the Personalized Web Portal. telephones may require adaptors). (ACD) features including an incoming call Basic Plus Service – Voice mail or Call In One queue, distributed call presentation, call Paul Bedell is Associate Director of Product (shared wireline and wireless “Cingular” clearing, music on hold, priority call transfer, and Management for the PremierServ Hosted IP Service. See another of his articles on page 6. Table 1: HIPCS Station Packages Package IP Access On-Net Personal Call Forwarding (Find Remote Office EMS Call Tree Standard Voice Mail or Unified Service Calling Web Portal Me Follow Me ) “Call In One” Messaging Basic X X X X Basic Plus X X X X X X Complete X X X X X X X

3 Continued from page 1 customer care. The Business Markets Group Kent Mathy is Cingular’s President-Business CINGULAR GETS DOWN TO BUSINESS has a separate customer care group strictly Markets Group. Prior to his role at Cingular, Mathy The Business Markets Group is a nationally focused on business customers. The several was Executive Vice President-Business Markets Group, responsible for all business customers at focused organization in which every part of the thousand professionals who are members of AT&T Wireless. Mathy joined AT&T Wireless company that touches the business customer the business care organization have the back- Services in 2003 as Senior Vice President, respon- has been brought together under one roof and ground, training and expertise to provide sible for the Enterprise Solutions Group. is completely separate from consumer opera- assistance with even the most intricate of Mathy was previously Chairman and CEO of Celox tions. This includes sales, customer care, voice and data situations a business Networks, where he defined and led the company’s ordering, product and offer development, customer might have. overall business strategy, delivering next generation marketing and solutions deployment. To form the Business Markets Group, IP switching solutions to network service providers Each of these areas is served by profes- Cingular brought together the business-to- worldwide. Before joining Celox Networks, Mathy was with AT&T for more than 18 years holding numerous sionals who are exclusively devoted to business organizations of the former AT&T management positions nationwide. business customers. They have the experi- Wireless and of the legacy Cingular Wireless. ence, training, expertise and focus to The former AT&T Wireless B2B group built a Mathy holds a Bachelor of Business Administration degree in Marketing from the University of address a business customer’s unique and great reputation in the global, corporate and Wisconsin-Oshkosh. He has also completed the most complex needs. government segments while Cingular enjoyed Executive Program at the University of Michigan. From a sales standpoint, the Business considerable success in the small business Markets Group is focused on four space. In other words, the two units brought segments: synergies to the table rather than redundan- “I play to win. I will not let anything get cies. This made the integration process that ͷ Global – covering the Fortune 1000 or much easier from Day 1. in the way.” equivalent U.S. revenue; ͷ Corporate – medium-sized businesses with The merging of the two B2B organizations Michael Jordan more than 50 employees; into the Business Markets Group is going ͷ Small Business – companies with more than remarkably well even though federal regula- 7 lines and fewer than 49 employees; and tors would not let Cingular and AT&T SBC Freedomlink Wi-Fi Service Available At ͷ Government – includes federal, state and Wireless begin the integration process until The World’s Largest Commercial Building select local governments, as well as the deal closed in October. Here are a More than 18,000 daily visitors who colleges and universities. couple of highlights. frequent the restaurants, food court, train Each of these segments is served exclu- The goal from Day 1 has been to take the station, retail stores and common areas of sively by sales teams that are highly best of the best from each organization to The Merchandise Mart -- the world’s largest experienced in that particular area. form a powerful new business-to-business commercial building -- at 350 W. Mart group. Cingular now has a unified business Center, Chicago, will now be able to use Cingular’s overall B2B philosophy under- sales force with each customer having a laptop computers and personal digital scores the value that the company places on single account team serving it. There is now assistants to wirelessly connect to the this segment, which represents a significant a single management structure at every Internet and corporate networks at speeds growth area for the wireless industry – level of the sales organization and a 50 to 100 times as fast as a dial-up particularly with regard to wireless data. This common commission system and structure. connection. SBC Communications, Inc. “walled-off” approach to serving business May 2005 May recently announced that SBC FreedomLink customers is a clear recognition by Cingular On the customer care front, all former AT&T Wireless business customers already are Wi-Fi service is available throughout The that these clients have unique and much Merchandise Mart, creating the largest more complex needs than consumers. being served by the business care organi- zation, and legacy Cingular business SBC hot spot in the city. How does this strategy translate into day-to- customers are now beginning to migrate to The common areas and meeting rooms day benefits for the business customer? this separate care system. located on the first and second floors of Let’s take marketing and customer care as 350 W. Mart Center have SBC hot spots. examples. The outside world is starting to take notice. For example, Forrester Research in January Additionally, the SBC Wi-Fi service is avail- Many wireless companies treat their offers issued a report in which Cingular was able on several floors of The Merchandise for businesses as an extension of what they named as the “front-runner” in the wireless Mart to provide Wi-Fi access for the many already have in place for consumers. Within business-to-business space. In particular, annual visitors. A total of 26 Wi-Fi Internet Cingular’s Business Markets Group, Cingular was cited for an “excellent” access points have been made available however, the product and offer development business customer care and support strate- throughout The Merchandise Mart and 350 team develops products and services that gies originally established by the former W. Mart Center. SBC companies will are tailored specifically for the unique AT&T Wireless, and scored highest for promote the availability of the FreedomLink needs of the business customer. “business customer care” among the major Wi-Fi service through signage and In the area of customer care, many wireless U.S. wireless providers in the evaluation. brochures located throughout the buildings. providers have representatives who assist Cingular Wireless clearly is setting the tone “We are pleased to offer Wi-Fi Internet both consumer and business customers. in the wireless industry as to what the entire access for the tenants and millions of That means that the same person who might customer experience should be for business people that visit The Merchandise Mart have just helped a caller to get their camera clients. Cingular’s approach to the business- each year,” said Mark Falanga, Vice phone to work could next be working with a to-business marketplace is a critical to President, Merchandise Mart Properties, Fortune 500 company’s IT department to try meeting its goal to be recognized as the Inc. (MMPI). “The availability of Wi-Fi to figure out why 50 BlackBerry users aren’t best at wirelessly enabling customers’ busi- service is yet another significant enhance- getting their e-mail. Cingular takes a different, nesses in a way that provides a tangible ment to Chicago’s premier international more effective approach to business return to their bottom line. business location.”

4 enal. SBCFreedomLink isphenom- rates inbothhotspotsandusers rants areoffering islandsofaccessviapublic andrestau- large numberofsmallretailers anincreasingly the spreadofpayphone, mirroring orboth.Finally, orWi-Fi dataports and nowalmostallofferstandard Ethernet tunity (andlatelythecompetitive necessity), caughtontotherevenue oppor- and airports required on-sitetechnicalstaff.Thenhotels access was expensiveandlocalnetworks Western Unionoffices. AtthattimeInternet muchlike the as theircorebusiness, were access cybercafésthatofferedInternet there –first accessmarket mobile Internet similartotheevolution ofthe This isvery intuitive pay phones we seetoday. phonesoperatedby specialists tothe early fromtelegraphsand cantly alongtheway, decreasedsignifi- complexity forendusers and increaseconvenience. Importantly, phones becameausefulway tocontaincosts ratesat“in-network” billing andpreferred phonecardsthatgave monthly users spread, similar retaillocations.Asthesebooths on any andfindpayphones corner incafesor allowed peopleonthemove tostoptheircars thephonebooth, “mobility” innovation, those “mobile”calls.Thelastfixedline makingsignificantrevenues from callers, forthe phones withseatsandworkspace addedbanksof hotelsandairports Later, withoutaccesstolocalservice. and others immigrants, fortravelers, telephone services then telegraph, specialized inproviding first toWesternreferred Unionofficesthat mobilecommunicationsmighthave days, withoutmobilephones.Intheearly world It ishardforyoungpeopletoday toimaginea may holdsomeanswers. shift frompay phonestomobile The will itchangeover thenext3-5years? buthow access “anywhere” isincreasing, It isclearthatthedemandforInternet areas usingtheSBCFreedomLink network. atrest drivers and long distancetruck parks, inRV vacationers we seestudents incafes, today demandforhotspots.Yet, drove early resourcesfromthefield– and othernetwork databases, e-mail, web-based applications, whorequireaccessto andsupport service, Road Warriors insales, –mobileworkers locationsandroamingagreements. partner over 7000ofthesehotspotsthroughour Douglas Ireland n bod andthegrowth and abroad, day intheUS hotspots every Millions ofpeopleuseWi-Fi > The Evolving Data Access Demand forMobile SM service nowoffers service te sr?Aan lookattheadoptionof Again, other users? mobile dataaccessbundles will appealto Why wouldthatleadtotheconclusion ofmobilecommunicationsservices. adopters We knowthe“Road Warriors” aretheearly FreedomLink network. like theSBC to joinnationalhotspotnetworks andshouldseekopportunities calculations, shouldkeep thisinmind theirROInetworks access Locations consideringbuildingWi-Fi willprobablyfade away.greater network ofa at individualhotspotsthatarenotpart thoughdemand the widerareacellulardata, ofhotpotsavaluablecomplement to network connections. Thismakes accesstoatrusted ness oftheneedforsecuritywithdata istheaware-between voiceanddataservices reduces throughput.Onemajordifference overhead significantly because theencryption mayusers alsopreferthespeedofhotpots VPN stability ofhotspotbackhaul.Corporate by thehigherspeedsandrelative served most multimediaapplicationsmay bebetter and accessingcentraldatarepositories, files, connections. Uploadingordownloadinglarge hotspots arepreferabletocellulardata therearemany situationsinwhich larly, calls inordertominimizetheexpense;simi- prefer landlinesforlengthy orinternational today cellularvoice users often However, today’s hotspots. Wi-Fi and Cingular Wirelesscellulardataservices ofconnectionspeedbetweenence interms littlediffer- theremay bevery end of2007, messaging andbrowsingapplications.Bythe sufficientformost speeds of200-400Kbps, offers andgrowing, able in7urbanmarkets nowavail- Cingular WirelessUMTSservice, locations withcellularvoiceanddata. andretail cafes, airports, hotspots inhotels, ofthousandsFreedomLinkthe network Bundle” thatcombinesunlimitedaccessto a“Road Warrior nered toofferjustthis, have part- andCingularWireless® service “access anywhere.” SBCFreedomLink and security, willdemandconvenience, users recognizablelocations.These in comfortable, hotspotsforhigherspeeds ofWi-Fi networks access complementedby unlimitedaccessto regular accessneedswillbuycellulardata theprofessionals whohave data. First, tocellular convert the mostfrequentusers ration ofusageandrevenues athotspotsas therewillbeasteadydeterio- repeats itself, the payphone tocellphonemigrationpattern What willhappentotheislandsofaccess?If cellular networks. accessvia ability ofbroadbandInternet hotspots foreshadowstheubiquitousavail- of mobilephones:thespreadpublicWi-Fi therise even predicated, ubiquity preceded, today). Whereisthisleading?Pay phone operates inover 3000oftheselocations hotspots(SBCFreedomLinkWi-Fi service [email protected] Hecanbereached at415.537.8073 or Spain. inNetworkEngineeringBarcelona, Masters his earned FreedomLink Venue Acquisition, Senior Account Manager forSBC Douglas Ireland, tions and end users. tions andendusers. isanexcellentsolutionforbothloca- service and improves satisfaction.SBCFreedomLink reducescosts, increases security, that monthlyunlimitedmembership For itisclear endusers and moreimportant. isgrowingmore network a largeandtrusted of What isclearforvenuesthatbeingpart one possibilityforthefutureofhotspots. ment ofpay phonesby cellphonesshows andthedisplace- teacher, isaterrific History needs aredrawn tohotspots. withspecific orregularusers quent users andonlyinfre- approach hotspotspeeds, speeds deteriorate ascellularnetwork revenues aroundhotspots bundle. Finally, the Cingular-SBCFreedomLink RoadWarrior tohybridmove accessbundles like fromWi-Fi tions draw Heavy yetmorenew users. users andnew applica- draws inmoredevelopers, formobileapplications themarket grows, anywhere”this numberof“Internet users thousands ofSBCFreedomLink locations.As like the withdesirablecoverage, networks intrusted to unlimitedaccessmemberships thenshiftfromsingleuseaccessfees users to includeallagesandlifestyles.Frequent and userdemographicscontinuetobroaden usecontinuestogrowrapidly,access: Wi-Fi out apossibleevolution ofmobiledata Now we canputthesepiecestogethertomap tions draw tothenetworks. new users cycleastheseapplica- beginning avirtuous exploit ubiquitousmobiledataavailability, illustrates thepent-upinnovation waiting to for. applications TheexplosionofWi-Fi-centric todevelop accessplatform “mobile” Internet giving software ahighspeed developers in like SBCFreedomLinknetworks service, applications available. Hereagainisarolefor adoption ismerelyamatterofmakingthe thatwidespread greater thanvoicecalls, over amobiledataconnectionissomuch available tion. Thepotentialrangeofservices thereis100%mobilephonepenetra- Asia, fixed lines.InsomecountriesinEuropeand now morecellularaccountsintheUSthan forinsight.There are cellular voiceservices home orwork. accessateither tion nowhasInternet found thatupto75%ofthe USpopula- Quantitative StudyofSociety. Thestudy study by theStanfordInstitute for the accordingtoanew messaging orchat, instant online communicatingviae-mail, spend57%oftheirtime users Internet Thrive Users Internet 5 UPDATE ͷ Game consoles Nokia’s N-Gage, launched in Autumn 2003, Paul’s Perspective ͷ Mapping Devices has a new version that plays videogames. ͷ Pagers Motorola’s MPx has a dual-hinge design, >The New Age Of ͷ FM Radios where the handset opens in one direction and Cell Phones ͷ Speakerphones looks like a regular phone, but it also flips Cell phones hold the open along another axis and looks like an e- promise of making life Cutting Edge Mobile Innovations – mail device (i.e. Blackberry). The Motorola easier by ultimately giving The Future Of the Cell Phone RAZR phone, launched in late 2004, also the mobile subscribers a wide- thinnest flip phone ever developed, at just At a truly stunning rate, wireless innova- range of possibilities. over 1/2 inch thick. It has similar to the tions move from the cutting edge to the Treo600 in many respects, such as MPEG4 650 million cell phones were sold across routine. Some analysts suggest that the video capability, “long range” Bluetooth capa- the world in 2004. Americans racked up current 1.5 billion phones that exist in the bility, a speakerphone, a color screen and of 500 billion minutes on their cell phones in world as of 2005 are paving the way to course a digital camera. the first half of 2004. 97 percent of their actually replace the personal computer total cell-phone bills charges were for time (PC). It’s plain to see that the mobile phone ******************************* spent talking. But in the not-so-distant is already on its way to becoming an all-in- Key: Nevertheless, there’s a key fact that future, talking may be the last priority of a one microcomputer. needs to be remembered when discussing cell phone user. the potential of the mobile phone to replace Mobile subscribers in Tokyo, who have access the PC: mobile phones keep getting smaller, A small but growing number of U.S. wireless to the fastest mobile networks in the world, but people are not. Millions of people are not subscribers use their cell phones to play use their cell phones to read magazines, going to replace the full screen, mouse and games, e-mail photographs and send text watch TV, read books and play games. keyboard experience with staring at a tiny messages. But industry analysts claim that Today’s cell phones are used in Germany to little screen. It’s simply not as practical. within the next few years, an array of new support a service called “Symbian Dater,” services could radically transform the way ******************************* where mobile customers program their we use cell phones. “dating profile” into their cell phone. When One way around this issue is to develop and We may be able to tune in to as many as a male mobile subscriber gets within deploy speech recognition technology for cell 100 channels of TV, find the nearest coffee distance of a woman in a nightclub (for phones, which currently exists for PDAs. shop using locator technology, get direc- instance) whose dating profile matches his Phones don’t have the processing power yet tions, and even pay for purchases using (Symbian compares the profiles and to adopt speech recognition, but Moore’s Bluetooth “e-wallet” technology. decides if they’re a match), his phone Law says that this day isn’t far off (Moore’s Law states that computer processing power This is already happening in Asia and Europe, vibrates, showing a video of the woman whose profile matches his profile. He then doubles approximately every 12 months, home to some of the fastest wireless with no appreciable increase in cost). networks in the world. In Asia, wireless scans the nightclub for the woman and introduces himself. Another hindrance to the PC replacement subscribers can find everything from English- concept is the battery of the cell phone – this Japanese translation dictionaries, to dating Sales of cell phones far outweigh the sales technology also needs to catch up. services on their cell phones. Belk believes of TVs, stereos, and even the revered PC. Projection keyboards are under development, that a good rule of thumb is that anything you Cell phone sales are now three times that May 2005 May where a laser inside the phone emits the see commercially available in Japan or Korea of personal computers. Today’s most pattern of a large keyboard onto a flat usually takes around 18 months before it sophisticated phones have the processing surface, and the phones’ camera reads and finds its way to the U.S. and subscribers power of a 1995 PC, while using 100 times understands the user’s finger movements. begin embracing it. By the same token, the less electricity. The CTO of PalmOne, Jeff Europeans have been vigorously using SMS Hawkins, claims that when the day arrives Innovation in the mobile industry is full of and e-wallet applications for years, yet SMS is where 2 to 3 billion people have cell twists and turns, so all these enhance- still struggling to be embraced in the U.S. But phones, they’re not all going to have a PC. ments may (or may not) be a way’s off. This the blame doesn’t lie completely with mobile This is possible, but the form factor part is because the cell phone industry isn’t a subscribers: wireless carriers have made only weighs in heavily on this lofty proclamation. monopoly. That’s a good thing, because no half-hearted efforts to advertise and promote The cell phone – especially the keyboard – one company could conceive of and develop SMS service. has to evolve a bit more in order to reach all these leading edge capabilities. the point where people are willing to Digital mapping is another application that’s The All-In-One Cell Phone abandon their personal computers. But being used with cell phones today. The real Today’s cell phones can do just about Hawkin’s latest product, the Treo, is world is documented, then integrated into the anything except make coffee. Just about becoming hugely popular. The Treo 600 has mobile phone. Driven by space photography, any popular electronic application or “toy” a tiny keyboard, slots for added memory, global satellite positioning, locator tech- has been integrated into today’s cell phone. and these other features : nology, search engines and new ways of ͷ marking information for the Internet, cartog- They’re not just cell phones anymore, Palm OS Organizer ͷ Built-in camera and speakerphone raphy is now on the leading edge. One they’re also an all-in-one device : application making use of this concept is a ͷ ͷ Color display MP3 players mobile application called “Dodgeball,” which ͷ ͷ TVs (soon) Quad-band “world” phone (850/900/ allows a mobile subscriber know if any friends ͷ Digital Cameras 1800/1900 Mhz operation) are within 10 blocks of you (cool, but scary?). ͷ PDAs ͷ POP3 e-mail access Microsoft has a new division called “Map- ͷ GPS Receivers ͷ Web browser Point,” with 150 engineers (including many ͷ Answering Machines (voice mail) ͷ 24 Mb available memory cartographers) researching simple ways for

6 developers to put mapping information into ͷ Researchers in the chemistry department Camera phones are potent inventions, the their software applications, which means at St. Louis University have developed a first affordable device that merges imagery they’ll undoubtedly find their way into the new type of biofuel cell phone battery that with the ability to transmit images to mass mobile world eventually. runs on ethanol (alcohol) and enzymes. audiences instantaneously. In 2004, it wasn’t There are also “smart” phones under devel- It’s renewable and enviro-friendly. Ethanol a camera company but a cell phone manu- opment that have video cameras (yes – video is a good fuel source because it’s fairly facturer (Nokia) that sold the most cameras cameras!), GPS antennas and automatic easy to break down, and it’s readily avail- in the world. In 2005, the cell phone industry access to Wi Fi hot spots. “Smart” phone able. This concept has been around since expects to sell 420 million camera phones, a sales currently constitute only 5% of the cell the 1960s, but the key challenge has huge leap from the 260 million phones sold phone market, but this share doubles every been stabilizing the enzyme so that it can in 2004. Cam phones have reached critical year. The mobility and always-on aspect of produce power for more than a few hours mass, and are reminding many of the giddi- today’s smart phones are what make them before “denaturing” and falling apart. The ness they felt when the Internet came of age more appealing to the populace. research group has built a test fuel cell in the late 1990s. that has run for 250 days with direct Samsung announced in May, 2004, that it’s Camera phones increasingly have more refills of vodka, gin, wine or beer every developing a cell phone that will receive 40 megapixels, which means they are capable two weeks. The goal is to develop a satellite TV stations. By 2007, mobile of taking higher-quality pictures for printing system that lasts two years and requires phones will pack a gigabyte of flash memory, too. A megapixel (a million pixels, or picture refills only once a month. Whether this making the phone essentially a huge photo elements) is a unit of image sensing translates into a new cell phone battery album or music player, and giving the capacity in a digital camera. A pixel is the type will depend on its weight. vaunted iPod a major marketplace chal- basic unit of programmable color on a ͷ At the request of Motorola, a polymer has lenge. Cell phones will sport a new look, computer display or in a computer image. In been developed that looks like any other more memory and more power. general, the more megapixels in a camera, plastic, but which degrades into soil when the better the resolution when printing an One new design concept is called discarded (environmentalists will love “metaphoring.” For example, a phone that’s image in a given size. But they also are this). University of Warwick (Britain) beginning to boast features found on stand- also an MP3 player will look more like an researchers helped develop a phone MP3 player. A phone that’s also a camera will alone cameras, such as red-eye reduction, cover that contains a real sunflower seed, auto-focus, and automatic flashes. look more like a camera than a cell phone. which will feed on the nitrates that are Last fall, Kyocera introduced such a phone, formed when the polyvinylalcohol polymer Ringtones the Koi, a 1.2-megapixel camera phone that cover turns to waste. It’s biodegradable, sports a sleek swivel design intended to be non-toxic plastic. The new plastic can be Love ‘em, hate ‘em. They’re here to stay. held like a camera. “Organic” shapes may rigid or flexible in shape. Those often obnoxious, but never boring become popular, where the phones are more ring tones we hear all around us, every day. rounded instead of rectangular. And, after The Camera Phone Revolution They play everything from the “I Dream Of decades of shrinking cell phones, experts Jeannie” theme song, to “sounds of the believe phones are going to begin growing, In 2004, the year many consider to be the rainforest,” to well-known audio clips from just a bit, to accommodate larger screens to breakout year for the camera phone, 84 million movies, to actual song snippets. Full songs support new applications. cell phones with digital cameras were shipped. and noises are both available. Some of UPDATE Removable storage devices and hard drives There are now video-camera phones that can them even sound like – a real, old-fashioned for cell phones are under development. play back video on a television, a phone with telephone ring (no!). Hard drives as large as 80 gigabytes are surround sound, and a phone that can go into Ringtones were first popularized by tech- expected in future cell phones, no different “Disney” mode, complete with Mickey Mouse’s savvy teenagers in the late 1990s. The than what we have at home on a DVD laugh and a Goofy icon on the screen. subsequent success of ring tones is a rare recorder. Stereo audio, faster processors, The camera phone is truly revolutionizing bit of good news for a music industry which higher-resolution screens and, of course, the whole concept of photography. It’s has been stung by Internet piracy and fussy the longer-life batteries needed to power providing the ability to instantly, digitally fans who would rather spend their hard- these hungry digital devices are also on capture everyday events that in yesteryear earned money on videos versus CDs. their way, according to industry experts. might have otherwise elicited thoughts and Billboard Music now has a new category on Wireless carriers naturally hope all these remarks such as “Sure wish I had my its web site that is just for downloading ring features and functions will generate more camera with me.” This is facilitated by the tones. People, especially teens, view the revenue. They’re counting on the “video fact that the vast majority of mobile ringtone as an identity statement. customers carry their phones with them generation” of 18- to 34-year-olds who grew Ringtone revenues are divided between the everywhere. Everywhere. up using cell phones and playing video music labels, their artists and wireless oper- games to keep the revenue from games, e- ******************************* ators. The average price of a ring tone is mail, video, photos and other data flowing. Key: “Cam” phones now provide a window anywhere from 60 cents to $2.00, but prices Other really unique, even odd developments into moments once ignored, customs once vary widely by country and region. In 2004, related to today’s cell phone: overlooked. In the process, they’re changing ring tone sales were projected to hit $3.5B ͷ NTT DoComo offers what they call a our laws (they’re outlawed in the U.S. (yes, billion) around the globe; becoming 10 “skull” phone, which allows users to Supreme Court), our relationships, and the percent of the $32B global music market. In place the phone directly up against their way we experience (and document) our the U.S., $375M was generated by ringtone head in order to hear the caller. This worlds. Many public restrooms have “No downloads in 2004. Just one year before the phone is supposed to be good for noisy Camera Phone” signs now. So do court- number was only $18M! Ringtone sales are environments such as train stations, city rooms, gyms, and now some schools. projected to reach $1B by 2007, according to streets or shopping malls for example. ******************************* research firm IDC.

7 ******************************* economic challenges for today’s wireless Key: Mobile subscribers can even download carriers. Consider the following impact that >SBC U-verse Experience many ringtones, and program their phones smart phones have on service: In a recent “Industry Insiders” address at to ring with certain tones (and photos) 1.User service calls last four times longer. the International Consumer Electronics depending on who is calling. 2.Customer care costs could rise by $1B Show in Las Vegas, SBC Communications across the industry Inc. Chairman and CEO Edward E. Whitacre ******************************* 3.4000 additional tech support reps are Jr. announced that SBC U-verseSM will be Ringtones are so popular in India, that six needed across the industry to support the brand for its suite of IP-based (Internet months after their introduction in 2004, one the current explosion of smart phones in protocol) products and services set to in ten mobile users have a custom ringtone. the marketplace. launch in 2005, including integrated next- The fastest-growing part of the ringtone generation television, super high-speed But wireless carriers are optimistic. In contrast trend is called “Master Tones, or “Real Internet access and Voice over IP services. Music Ringtones,” which have mp3 clarity. to the issues listed above, carriers believe they’ll meet the smart phone challenge by: “The U-verse experience perfectly Cell Phone Viruses 1.Developing more reliable phones and describes what this new set of services is Since mobile phones have become so applications all about,” said Whitacre. “It’s about computerized, they’re a new target for the 2.Hoping customers become more profi- ensuring that the entire universe of commu- pathetic, misguided, bored hackers and cient in their use of the phones nications and entertainment services virus writers who’ve plagued the Internet 3. Urging customers to use self-diagnostic tools works for and around you.” (and end user PCs) for years now. 4.Emphasizing self-service. At the heart of the U-verse portfolio is In June 2004, a group of virus writers some- One question remains, which will be answered Project Lightspeed, the company’s previ- where in Eastern Europe unveiled the first over time: is packing all this “stuff” into one ously announced approximately $4 billion worm that attacks mobile phones. The “Cabir” device too much? Do people really want that initiative to deploy fiber to 18 million house- worm hit a few hundred people with phones much functionality in their cell phones? It’s holds across 13 states by the end of 2007. that run the Symbian operating system and likely the 18 to 34-year-old demographic may Through Project Lightspeed, SBC compa- are equipped with Bluetooth technology. say “yes,” but what about the rest of us? nies plan to deliver integrated IP-based video, voice, wireless and data services, There are now mobile viruses, known as No matter how many tasks cell phones are providing a communications and entertain- “mobile malware’, which can infect phones able to do, there will always be consumers ment experience not previously realized in that are within 10 meters of each other which who simply want them for their original the mass market. are Bluetooth capable. This virus is known as purpose – to talk. “Lasco.A,” which was announced in January, Widespread availability of broadband is a key 2005. Analysis of the code shows that this element in making convergence a reality. virus is based on an earlier cell phone worm Whitacre said that consumer broadband called “Cabir.H.” But like many desktop Paul Bedell is Associate Director of Product adoption levels are reaching critical mass computer viruses, the program not only Management at SBC and an Adjunct Faculty member and announced that at the end of 2004, the spreads automatically , but also infects other at Chicago’s DePaul University and a published company reached a significant milestone of .sis files on a host mobile handset. This type author. This article is excerpted from his upcoming surpassing 5 million DSL lines in service – of mobile phone virus can render the phone book, “Wireless Crash Course-Second Edition.” the first company in the country to do so.

May 2005 May completely unusable. An anti-virus company The opinions expressed in UPDATE are those of Mr. Earlier SBC companies announced the forma- in Russia recommends that if a (smart) Bedell and not those of the SBC family of companies. tion of a joint venture with 2Wire Inc. to deliver phone using the Symbian operating system a home entertainment service that integrates and the “series 60” platform, should have satellite TV programming, digital video Bluetooth’s “discovery mode” disabled and Contract with Walgreen Co. recording, video on demand and Internet accept no files from unnamed devices.” SBC Communications Inc. recently an- content, including Yahoo!®Photos and music Sharing games between handsets can infect nounced a new voice and data networking via an award-winning new set-top box – and phones too. The bottom line: just as you’d be contract with Illinois-based Walgreen Co., ties them all together with the familiar and wary of accepting or opening an unknown e- the nation’s largest drugstore chain. intuitive SBC Yahoo! user interface. mail or file sent to you, the same cautious approach should be taken when dealing with Under terms of the contract, SBC compa- Other services in the U-verse suite include anything sent to your mobile phone. nies will provide various voice, data Unified Communications, which combines networking, and managed services to more wireline and wireless voice mail, e-mail and Is All This Really Necessary? than 2,000 Walgreens locations nation- faxes into one mailbox. The service is avail- able today but will continue to be enhanced Like any major innovation, there are benefits wide. This nationwide agreement enhances and disadvantages too. The good side of this an already solid relationship between in the coming months. Also, the U-verse new age of cell phones is the new and cutting Walgreen Co. and SBC companies. family of services will include a consumer- edge innovations and the multi-purpose func- “We were seeking a major provider that based VoIP service that the company plans tionality of mobile terminals today. The would not only provide excellent customer to unveil in first-quarter 2005. downside is that the new capabilities create service and a simplified rate structure, Specific U-verse product names will be a new support challenge. Some PCS compa- but one that would also match our scale announced later in the year as the products nies have gotten to the point where they seek and scope,” said Trent Taylor, Senior Vice are made available to consumers. out new hires in technical and customer President and CIO, Walgreen Co. “We’re support who have an IT background, because confident that SBC companies will be “Most folks are about as happy as they the phones have become so sophisticated able to help us meet our needs today make up their minds to be.” and full of computing capabilities. They’re while also accommodating our expected very software-dependent. This raises huge growth in the future.” Abe Lincoln

8 benefits, and it will enhance, not harm, compe- companies, shareholders of AT&T will >SBC, AT&T Begin Merger tition in every sector. The filing points out: receive total consideration valued at $19.71 Approval Process The public will benefit from creation of a per share, or approximately $16 billion, at Consumers and businesses throughout the U.S. communications company with global the date of the merger announcement. United States will see more investment in, reach. AT&T’s network, which spans more AT&T shareholders will receive 0.77942 and faster deployment of, innovative new than 50 countries, and AT&T Labs’ techno- shares of SBC common stock for each and improved communications technolo- logical prowess will be combined with SBC’s common share of AT&T. Based on SBC’s gies and services with the merger of SBC financial strength and local exchange, broad- closing stock price on Jan. 28, 2005, this and AT&T than the companies could have band and wireless capabilities – resulting in exchange ratio equals $18.41 per share. In hoped to achieve on their own, the compa- a positive impact on investment, employ- addition, at the time of closing, AT&T will nies said in a recent joint filing with the ment and productivity for the U.S. economy, pay its shareholders a special dividend of Federal Communications Commission. benefiting all Americans. $1.30 per share. The stock consideration in “This merger signals a new era in commu- The merger will strengthen national security. the transaction is expected to be tax-free to nications for customers and the companies AT&T in particular serves numerous govern- AT&T shareholders. who serve them,” said Edward E. Whitacre ment customers, including the White House, The acquisition is subject to approval by Jr., Chairman and CEO of SBC. “This is a the Departments of Defense and Homeland AT&T’s shareholders and regulatory authori- natural and healthy evolution of a dynamic, Security and numerous states from Alaska to ties, and other customary closing competitive and restructuring communica- New York. This transaction will result in a conditions. SBC and AT&T have also begun tions industry. It is a direct response to a robust communications company with the the review process with the Department of new competitive reality – and to retail and resources and expertise necessary to Justice. The merger is expected to close in business customers who have so many continue to serve those customers with late 2005 or early 2006. more choices in communications today leading-edge services. than 10 years ago, when the last federal Cautionary Language Concerning Forward-Looking Statements Information set forth in this press release contains financial estimates telecom laws were passed.” The combined company will be an engine of and other forward-looking statements that are subject to risks and innovation and investment across the uncertainties, and actual results might differ materially Such statements “The combination of these two great country, speeding the delivery of existing include, but are not limited to, statements about the benefits of the companies is designed to create a business combination transaction involving SBC and AT&T Corporation, services to customers who might otherwise stronger global competitor, with the including future financial and operating results, the new company’s wait years for them, and prompting the devel- plans, objectives, expectations and intentions and other statements that resources to bring the benefits of advan- are not historical facts. Such statements are based upon the current opment of new services that would otherwise ced communications services and innova- beliefs and expectations of SBC’s and AT&T’s management and are not exist. The combined company will have subject to significant risks and uncertainties. Actual results may differ tion to customers of all kinds including from those set forth in the forward-looking statements. greater incentives and ability to provide the consumers, small and medium-sized busi- The following factors, among others, could cause actual results to fruits of its investment in research and devel- differ from those set forth in the forward-looking statements: the nesses, and large and multinational opment to all customers. ability to obtain governmental approvals of the transaction on the corporations,” said David W. Dorman, proposed terms and schedule; the failure of AT&T shareholders to And because of the merger, the capabilities, approve the transaction; the risk that the businesses will not be inte- chairman and CEO of AT&T. “This merger is grated successfully; the risk that the cost savings and any other a great strategic fit for our two companies, reliability and efficiency available to the synergies from the transaction may not be fully realized or may take largest business and government longer to realize than expected; disruption from the transaction for our customers and for our employees.” making it more difficult to maintain relationships with customers,

customers should flow to residential and UPDATE Filing by the companies begins the formal employees or suppliers; competition and its effect on pricing, small business customers. spending, third-party relationships and revenues. Additional factors federal review process at the FCC and U.S. that may affect future results are contained in SBC’s filings with the Department of Justice aimed at determining Securities and Exchange Commission (“SEC”), which are available at Merger Will Help Advance Competition the SEC’s Web site http://www.sec.gov. SBC disclaims any obligation that the merger is in the public interest. So The companies’ FCC filing also demon- to update and revise statements contained in this presentation far, more than 260 consumer, business and based on new information or otherwise. strates that the merger will help advance civic organizations, as well as state and This news release may contain certain non-GAAP financial competition, not only in the already competi- measures. Reconciliations between the non-GAAP financial federal elected officials, have announced measures and the GAAP financial measures are available on SBC’s tive business market but also in the local their support for the merger. Web site at www.sbc.com/investor_relations. and long-distance services mass market, in In connection with the proposed transaction, SBC intends to file a regis- According to the filing, the merger is a which AT&T stopped pursuing new tration statement, including a proxy statement of AT&T Corp., and other materials with the Securities and Exchange Commission (the “SEC”). response to rapid technological changes, customers last year. The filing points out that Investors are urged to read the registration statement and other mate- extraordinary competition in the marketplace the merger will enhance competition outside rials when they are available because they contain important information. Investors will be able to obtain free copies of the registra- and financial pressures – including the loss of of SBC’s region and will certainly not reduce tion statement and proxy statement, when they become available, as hundreds of thousands of jobs and more than such competition within that region. well as other filings containing information about SBC and AT&T Corp., without charge, at the SEC’s Internet site (www.sec.gov). These docu- $2 trillion in market value – that have marked The business enterprise segment is also ments may also be obtained for free from SBC’s Investor Relations web the telecommunications industry the past few highly competitive. Competitors include site (www.sbc.com/investor_relations) or by directing a request to SBC years. SBC and AT&T bring deeply comple- Communications Inc., Stockholder Services, 175 E. Houston, San inter-exchange carriers, systems integra- Antonio, Texas 78205. Free copies of AT&T Corp.’s filings may be mentary strengths critical to the future of U.S. tors, equipment vendors and value-added accessed and downloaded for free at the AT&T Investor Relations Web telecommunications, capable of delivering Site (www.att.com/ir/sec) or by directing a request to AT&T Corp., service providers, other network providers, Investor Relations, One AT&T Way, Bedminster, New Jersey 07921. the advanced network technologies neces- foreign carriers, CLECs, cable operators and SBC, AT&T Corp. and their respective directors and executive officers sary to offer integrated, innovative high-quality and other members of management and employees may be deemed other ILECs. This intense competition will to be participants in the solicitation of proxies from AT&T share- and competitively priced services to meet the continue for these highly sophisticated holders in respect of the proposed transaction. Information national and global needs of all classes of customers with widely diverse needs. And regarding SBC’s directors and executive officers is available in SBC’s customers worldwide. proxy statement for its 2004 annual meeting of stockholders, dated the merger raises no concern about compe- March 11, 2004, and information regarding AT&T Corp.’s directors tition in the markets for Internet backbone, and executive officers is available in AT&T Corp.’s proxy statement for Benefits of the Merger its 2004 annual meeting of shareholders, dated March 25, 2004. wireless or international services. Additional information regarding the interests of such potential The companies’ filing states the merger will participants will be included in the registration and proxy statement Under terms of the merger agreement, and the other relevant documents filed with the SEC when they produce numerous tangible public interest approved by the boards of directors of both become available.

9 Jerry Hinek, SBC Security Crypto-Gram also lists a number of security organization.” SANS holds seminars in related news stories with a few comments. many venues, but it also allows anyone to One story in the November Crypto-Gram was subscribe to free information security >Valuable Tips of an experiment in France where airport newsletters (http://www.sans.org/newsletters). On Security security placed some plastic explosives in a The website currently offers 8 e-mail randomly selected suitcase to see how well it newsletters. Two of the most popular are Executive Summary would be detected by the screening system. the weekly NewsBites, which is designed as This article describes sever- The owner of the suitcase wasn’t stopped and an executive summary or weekly informa- al sources of information the suitcase was never seen again. Schneier tion security articles, and the @Risk security news and analysis speculated that some day an innocent Consensus, which presents the major infor- that the reader can access for free. Some of traveler will be stopped from boarding a plane mation security threats. The @Risk the sources are sponsored and have ads, but when another scanner finds residue of that Consensus is also a weekly. they all give valuable information. plastic explosive in his or her suitcase. SANS newsletters come with paid adver- Introduction Another story told about concerns that tising (“Sponsored Links”), but the You can’t have security without enough infor- altimeter watches could be used as triggers newsletters are all text formatted, so you mation. We need to know about the known for explosives. Schneier’s question was why will get no pictures or pop-up ads. threats and how to protect ourselves. worry about altimeter watches when the The SANS website is worth a visit. Fortunately there is a great deal of that infor- person wearing the watch could be the trigger. mation available free. There are newsletters, He posts feedback he has gotten from Anti-virus Sources periodicals and websites packed with infor- people who disagree with him. Computer viruses are becoming a bigger mation security news and analysis. For back issues, or to subscribe, visit and bigger problem. They have become This article chooses several of the many http://www.schneier.com/crypto-gram.html. economic weapons designed to steal your sources. With these, readers can also learn identity or make your computer a zombie for of other sources that suit their particular Business Sources a hacker to use. needs. These sources are free because Microsoft® Several times a year the news media businesses pay to publish or sponsor them Web Site announces a new computer virus, but the and because the economics of the Internet It’s no secret that the majority of the world’s media are not virus experts, and don’t make publishing them inexpensive. computer users use Microsoft operating provide enough information for you to Everything written in this article expresses systems and software. Because of this understand the attack or to defend yourself solely the personal and professional there are far more attacks against from others like it. There are many more opinions of the author. Microsoft operating systems and software viruses that never make it to the news. than against those of any other vendor. In addition, there are a large number of e- CRYPTO-GRAM – A Terrific Newsletter Microsoft has an entire section of it’s mail hoaxes that circulate warnings viruses Crypto-Gram is a monthly e-mail newsletter website devoted to computer security. that don’t exist. The hoaxes are nuisances that’s bound to make you think differently Certainly a lot of the information relates to that desensitize you to real virus threats. about security than you did before. The Microsoft products and services, but a lot Fortunately the major anti-virus vendors author, Bruce Schneier, is a prominent of it discusses common security risks such have a lot of information for you for free. May 2005 May member of the information security commu- as Spyware and computer viruses. McAfee® Anti-virus Microsoft has recognized the importance of nity. His background is in cryptography. In this McAfee®has two sources of information: the computer security and it’s security website monthly newsletter he offers his expertise Virus Information Library (http://vil.nai.com/ evolves constantly. and analysis on the entire range of security vil/default.asp) and e-mailed virus alerts. You issues from national ID cards to information Security Alerts subscription can subscribe to virus alerts by going to the warfare to electronic voting to airport security. It seems almost every month Microsoft same link and clicking “Virus Alerts” in the He’s not afraid to question assumptions and publishes a report of a vulnerability discov- menu. Two good things about their e-mailed brings his considerable analytical skills to the ered and a patch released. You can subscribe alerts are: discussion of sensible security practices. He to Microsoft’s e-mail security bulletins on doesn’t alarm people about threats or risks; 1.You really do get advanced warning of their website at: http://www.microsoft.com/ new viruses rather he educates people to make better security/bulletins/alerts.mspx. There are two decisions about security. classes of bulletins, technical and consumer 2.You have a reliable and authoritative Each newsletter contains good analyses of oriented. Within those two classes are a wide source of information. You know that the current security topics. Running through his variety of options for different areas of information they send you is legitimate. analyses are several themes: interest within the Microsoft universe. I The Virus Information Library has detailed ͷ Security always has tradeoffs counted 25 selections at the Microsoft information about the characteristics of subscription center. You can also select from thousands of viruses as well as instructions ͷ There is no substitute for information and an incredible number of spoken languages. for removing the virus from your computer. awareness SANS The Virus Information Library also lists all ͷ Good security measures have to be SANS (http://www.sans.org) is an organization the hoaxes so you can determine whether examined openly so that informed people devoted to information security training and the warning you got from a friend or family can evaluate the strengths and weaknesses certification. Quoted from SANS website: member is legitimate or a hoax. of the measure as well as the tradeoffs “The SANS (SysAdmin, Audit, Network, Norton Anti-virus By Symantec™ ͷ A lot of security measures provide little or Security) Institute was established in 1989 Symantec’s Security Response site no actual security as a cooperative research and education (http://securityresponse.symantec.com) has a

10 list of current virus threats and other There really is a lot of free information out issues. Expect a wide array of information security advisories. You can also find an there. The January edition also has an article security topics from threats to product extensive listing of all known viruses and titled “The Myths of Security,” which tries to reviews to security strategies. hoaxes. There are virus definition files, bring some common sense to solving security Webinars current Symantec information and some problems. People try many things to enhance There are way too many web seminars removal tools that you can use for specific their security or solve problems, often (Webinars) to try to summarize. They all issues. Look for the “Reference Area” at ignoring effective strategies for things that have specific topics, and they happen all the bottom of the web page for links to this don’t work well. the time. Once your name and e-mail information. From the Information Security website address get on some mailing lists, you will Trend Micro™ browse articles or click the link for a free get invitations to one hour, interactive, One nice item on Trend’s website is a link subscription. Expect to get practical, but audio-visual presentations. Most are well for a free online virus scan. (http://www.trend- high level, information for protecting your organized and can provide helpful informa- micro.com/en/home/us/enterprise.htm) If your own enterprise. tion you can use right away. When you see computer is acting funny, and you don’t SC Magazine one that interests you, you simply register. have anti-virus software running or you’re SC Magazine is devoted to information not sure it’s current, you can run a current security. It is both a monthly print magazine Conclusion scan to make sure. Click on the Security and a website with information. We need information, and there’s actually Info link and you can find detailed virus (http://www.scmagazine.com/home/index.cfm). plenty of it. If you’re someone who likes raw information including Trend’s weekly virus Subscriptions are free.if you fill in a survey information, you can get that. If you’re report of the top current viruses. about yourself and your business which someone who wants other experts to distill allows the magazine to target advertisers. the information and offer analysis, that’s Periodicals The February, 2005 cover story tells how there too. Use these sources as a starting Information Security Magazine the US Air Force saved $100 million by point in gaining greater security awareness. Totally by coincidence the January, 2005 negotiating with Microsoft® to manage its Jerry Hinek is a Senior Business Security Manager issue of Information Security (http://infosecuri- security patch process more efficiently. for SBC Services. He earned an MBA in tymag.com) has a short article on information Other articles dealt with identity manage- Information Management and is a Certified security Web blogs “Blah, Blah, Blog….” ment, SPAM and legal security compliance Information Security Professional.

and home-networking services, and will allow Music on Demand. Customers will have the >Joint Venture With 2Wire Inc. customers to access photos and music and ability to listen to high-quality music from SBC Communications Inc. recently announced to schedule their digital video recorder (DVR) Yahoo! Launchcast Internet Radio via their it has formed a joint venture with 2Wire Inc. to remotely from any Web-connected computer DSL connection and deliver it to their home deliver a home entertainment service that through the SBC Yahoo! user interface. A stereos, entertainment systems and integrates satellite TV programming, digital future enhancement will allow remote access networked PCs video recording, video on demand, and through Cingular Wireless®phones. Internet content including photos and music Messaging. In the future, SBC local phone

Customers will also be able to enjoy total inte- UPDATE via an award-winning new set-top box – and service customers will be able to view gration and control from the comfort of their ties it all together with the familiar and intu- Caller ID and call-log information on their TV easy chair, using a remote control and a itive SBC Yahoo! user interface. The joint screen. Another future enhancement will familiar, easy-to-use interface on their TV venture is part of a two-pronged SBC video integrate the recently launched SBC Unified screen. An agreement with EchoStar strategy to extend home entertainment video Communications Service, which combines Communications Corp. to include SBC | DISH services to customers through either high- wireline and wireless voice mail, e-mail and Network will help ensure that broadcast speed fiber or DSL. faxes into one mailbox. content works seamlessly with the new set- Photos. Customers will be able to The service will combine content delivered by top box service, offering customers unprece- download digital photographs directly from broadband and satellite into one easy-to-use dented ease of use for digital video recording, their digital cameras to the set-top box or package, giving consumers a powerful new remote access and video on demand. way to extend the SBC Yahoo! DSL experience easily view the saved photos on a TV An agreement recently signed by SBC compa- beyond the desktop to bring entertainment screen from a networked PC. Customers nies and Yahoo! to extend the SBC Yahoo! content to their TV screens and stereos. will also be able to access and share their online interface to other products will ensure Today’s announcement builds on the recently SBC Yahoo! Photos which are stored that the new home entertainment service announced expanded alliance with Yahoo! Inc. online in a whole new way. brings a common look and feel to popular which calls for the companies to extend the Remote Access. Through any Web-connected Web-based features including music, photos, SBC Yahoo! customer experience beyond the computer, customers will have the ability parental controls and remote access. desktop. The offering will be available to to remotely program their set-top box to customers who have both SBC | DISH record satellite entertainment, download Key Benefits Will Include: Network and SBC Yahoo! DSL services. It is movies on demand, and access their expected to roll out in mid-2005. Satellite TV. Subscribers will have a variety of photos and personal music collection SBC | DISH Network satellite entertainment The service will include a satellite TV receiver, through the SBC Yahoo! user experience. programming packages available. digital video recorder (DVR) and storage for Customers will also be able to access files digital photos and music. Customers will Video on Demand. Customers will be able to on computers connected to their home benefit from the 2Wire MediaPortalTM tech- download and view on their TV screen a variety networks. In the future, customers will be nology, which will provide fully integrated SBC of movies from different entertainment services, able to enjoy remote access using a Yahoo! DSL, SBC | DISH Network satellite TV all delivered via high-speed DSL connection. Cingular wireless phone.

11 and downloading large files, and other band- ͷ Firewall software to help shield your Data with David width intensive applications. It offers computer from unauthorized access ͷ DSL Growth Continues virtually unlimited e-mail account storage, SpamGuard to help keep unwanted e-mail industry-leading safety and security features from clogging your inbox Broadband has been the and an award-winning parental controls ͷ E-mail virus protection software buzz word used the past package. This package supports a home or More Convenience decade as the United medium-sized office with heavy use. States and the world ͷ Seamless transition from old Internet community has become SBC Yahoo! DSL Express Package gives you all service – e-mail forwarding, address- connected through the the benefits and customization unique to change notification increased presence of the Internet. SBC Yahoo! DSL, allowing you to do much ͷ Unlimited nationwide dial-up Internet access Broadband has been the enabler of the more at fast speeds (384Kbps-1.5Mbps ͷ Personalized SBC Yahoo! DSL home page Information Super Highway allowing easy downstream/128Kbps upstream). Make ͷ Customized SBC Yahoo! DSL browser stock trades, shop online, or even conduct access to information content, entertain- ͷ SBC Yahoo! Photos with unlimited online business-to-business commerce. As with ment, and e-commerce applications just to storage the DSL Pro package this package offers name a few. The growth trend continues for ͷ SBC Yahoo! Briefcase with up to 760 MB one dynamic IP address. DSL worldwide as market research firm IDC of online storage reports. Their Broadband Markets and ͷ Static IP Addressing Three Consumer Reports®guides Technologies program manager wrote: Better Communication “Strong demand for broadband access, SBC also offers the DSL Pro Package and ͷ coupled with differentiated service offerings the DSL Express Package with static IP Enhanced e-mail – SBC Yahoo! Mail PLUS and falling prices, will drive growth of the addresses. The speeds are identical at no extra cost with 2 GB of storage, POP DSL market, making DSL the reigning broad- however with the “static” packages the access and email forwarding ͷ band technology installed on a global basis customer receives five static IP addresses. Up to 10 additional SBC Yahoo! Mail through 2008. By the end of the forecast In addition to the Pro and Express packages accounts with 250 MB of storage each, period, DSL will account for more than one- we also offer a static IP symmetrical service POP access and email forwarding ͷ half of worldwide installed broadband that offers 384/416 up and downstream SBC Yahoo! Messenger with high-quality video connections and will generate more than speeds. The highest DSL speed offered is In addition you’ll get to pick two extra $55.4 billion in services revenue.” the SBC Yahoo! DSL Expert Plus-S Package, premium services at no additional charge – again with five static IP addresses, and a one from each category. Industry analyst Point Topic reported to the download speed of 1.5 up to 6.0 Mbps and DSL Forum in December 2004 that there an upload speed of 384 up to 608 Mbps. Category A – Choose 1 are now a total of 85.3 million DSL DSL Expert Plus-S requires a shorter local ͷ SBC Yahoo! Games All-Star package subscribers worldwide. DSL is the world’s loop length (7.5 Kft from the central office ͷ SBC Yahoo! Briefcase storage – 150 MB extra most popular broadband technology adding or 10 Kft from the remote terminal) due to ͷ E-mail Marketing Trial more than half a million people each week the higher speed. Category B – Choose 1 worldwide. SBC is also growing in DSL ͷ subscribers finishing 2004 with 5.1 million SBC Yahoo! Briefcase storage – 500 MB extra Pricing ͷ DSL lines in service, number one among Online Bill Pay – 5 payments per month The local loop length from our wire center (from 750+ company payee list) May 2005 May U.S. telecommunications providers. SBC (central office) or a neighborhood remote ͷ Encyclopedia Britannica Online has more than doubled its DSL line base in terminal will determine the product and ͷ AntiVirus Software (protects entire PC just the past two years. By all indications speed available to customers. We have from harmful viruses) SBC expects in 2005 continued growth in promotional offers for 12 month commit- DSL lines at a pace consistent with 2004. ments that discount the monthly price, As an SBC Yahoo! customer you’ll also get Some of this growth will come from our equipment and installation. Special offers 20% off the list price for 1 full year on three small business segment where over 60 can include a SBC Yahoo! DSL Wireless additional premium services such as: percent of our SBC Yahoo dial-up Home Networking/Office Gateway kit, a Entertainment customers are in geographic areas eligible laptop Home Networking/Office Gateway ͷ for DSL service. SBC Yahoo! Games All-Star Subscription bundle or web hosting. Please check with – 1 month, 3 months or a full year This article will recap the SBC Yahoo! DSL your Liaison Manager or the SBC web site ͷ SBC Yahoo! Games On-Demand – play PC products for your home and business use. In for the current available promotional offers games on your desktop addition I will report on a new service from for SBC Yahoo! DSL services. SBC that will offer a single source solution Professional & Finance ͷ for hardware, software and networking Standard Features SBC Yahoo! Connected.com Online problems for small business customers. SBC, the nation’s number one DSL Internet Backup Service provider and Yahoo!, the number one global ͷ AntiVirus Software (protects entire PC SBC Offers Speed Internet brand, have teamed up to give you from harmful viruses) ͷ SBC Yahoo! DSL Pro Package is the top of the the Internet in a personalized way. Listed E-mail Marketing Trial ͷ line – one dynamic IP address – offering all below are many of the benefits that come SBC Yahoo! Finance Real-Time Package the benefits and customization at the with SBC Yahoo! DSL service. (Real-Time Quotes, News, Market highest speeds (1.5Mbps-3.0Mbps down- More Security Commentary) ͷ stream /384Kbps upstream). It is designed ͷ Pop-Up Blocker to help keep annoying ads SBC Yahoo! Finance Research Reports for simultaneous use of web surfing, e-mail, at bay Life Management & Family ͷ SBC Yahoo! Personals ClubConnect member- animation-rich commerce, audio and video ͷ Parental controls customizable to your ship – 1 month, 3 months or a full year streaming, gaming on demand, uploading preferences

12 ͷ Consumer Reports – Auto Hub – 90-day access Phone support is charged on a “per incident” access to a high-speed SBC Yahoo! DSL ͷ Consumer Reports – Full Access – one- basis at $49.99 per incidence (billed via connection, allowing everyone to share files year subscription major credit card), and includes opportunity and printers, play head-to-head Internet ͷ SBC Yahoo! Briefcase Storage – 50 MB to call back for follow-up on same issue games, download MP3s, and stream extra per year within 5 days without incurring an additional videos. More information may be found at ͷ SBC Yahoo! Briefcase Storage – 100 MB fee. Customers must have SBC DSL service http://www02.sbc.com/DSL. extra per year in order to be eligible for Support+. Our SBC Web Advantage allows you to estab- SBC Broadband Enhanced Services The benefit of using SBC Support+ is single, lish a professional web presence, utilize SBC now offers a new service called Support+ comprehensive source of support by highly e-commerce, obtain web domains, to residential and small business customers. trained technical experts. Currently, resi- customize your company’s e-mail, use Support+ offers a single-source solution for dential and small business customers must marketing tools to acquire and retain busy computer users who don’t have time, call equipment and application manufac- customers, get reliable DSL/dial service interest or depth of expertise to maintain their turers individually for support. This can and recruiting services through online computer, handle computer mishaps and become frustrating for customers as they postings. Combine the power of SBC problems, and who wish to avoid wasteful and need to repeat the problem each and every Yahoo! DSL with SBC Yahoo! Web Hosting frustrating computer downtime. time they contact technical support; and save up to 20% on monthly hosting Support+ service delivers computer users a becoming a major inconvenience for the fees. For more information go to highly reliable and secure computer support customer when multiple devices and/or http://smallbusiness.sbc.yahoo.com service that is available 24 hours a day via software are part of the computer set up or We also have a new tool available, Bundle an 800 toll free number to address all network. Our Support+ techs are able to Selector, designed to help you explore the software, hardware, peripheral and network assist customers with troubleshooting and options and value of bundling your services issues that are out of scope for SBC DSL Tier configuring networked devices remotely. together for SBC Local Service, SBC Long I/II agents today . On-site support for instal- More information on the terms and condi- Distance Service, Cingular service and lation, configuration and troubleshooting will tions of our customer support technical SBC Yahoo! DSL or Dial Service. Check out be offered in the near future. Support+ services may be found at www.sbc.com/cts. the configurator at http://www02.sbc.com/ customers will find support for: DSL_new/content/1,,21,00.html ͷ Enhanced Networking (installation, config- Related Product Offers uration and support for networked PCs SBC also offer complementary products and and peripherals) services associated with DSL. Here’s a quick ͷ Operating Systems (assistance with OS summary of these offers. Please check the installation and troubleshooting) SBC web site or contact your Liaison ͷ Applications (support and troubleshooting Tom David Manager if you need more information. for defined software) Liaison Manager ͷ Hardware (installation, configuration and SBC Home Networking/Office Gateway gives your [email protected] troubleshooting) entire household or office simultaneous

ͷ UPDATE SBC-HP Strategic Alliance mize total cost of ownership, particularly IT and telecom convergence technologies > when facing key challenges such as imple- ͷ Mobile data services SBC Communications Inc. and HP (Hewlett- menting new convergence solutions or ͷ Wide-area networks (WAN) Packard) recently announced a strategic integrating branch office operations into ͷ Network and infrastructure security alliance to help U.S. businesses streamline corporate networks. ͷ Business continuity services the management of complex IT and commu- ͷ Branch office operations and integration nications environments. The companies, Both companies plan to begin jointly capitalizing on their respective world-class marketing each company’s services in the The two companies plan to develop an inte- capabilities, plan to provide enterprises with a first quarter of 2005, and currently plan to grated managed services program to target one-stop, one-call approach to management develop additional joint offerings, including enterprise businesses that are adding loca- of complete IT solutions – from PCs and services designed for smaller businesses, tions, extending IT and telecom services to servers to the communications networks that later in the year. branch offices, upgrading to newer Internet tie them together. Protocol (IP) technologies, supporting new Integrated Solutions For Enterprise Businesses software applications, or seeking lower or Expanding their long-term relationship, the more predictable overall network and IT costs. SBC family of companies and HP intend to SBC companies and HP plan to jointly market work together to develop, deliver and a portfolio of managed solutions that utilize “This alliance positions the SBC companies market a portfolio of highly adaptable HP’s expertise in IT and carrier-grade tech- and HP to offer seamless, end-to-end IT and packaged services that integrate telecom nologies with SBC companies’ leadership in telecom solutions and a single point of and IT to provide end-to-end managed solu- advanced communications networking, such contact approach that we think many of our tions for enterprise businesses. as Voice over Internet Protocol (VoIP) service respective enterprise customers will find for businesses. The anticipated program appealing,” said Mark Keiffer, senior vice For enterprise customers, the alliance would be designed to enable enterprise busi- president, SBC Business Marketing. provides an opportunity to consolidate nesses to take advantage of a customized ongoing management of the most common set of integrated telecom and IT technologies, IT infrastructure needs: voice and data “Don’t judge each day by the harvest with the added simplicity of a single point of networks; equipment such as servers, PCs you reap but by the seeds you plant.” and printers; and desktop software. The contact and a single bill. This program would integrated solutions are designed to help be focused on helping businesses with six Robert Louis Stevenson companies increase productivity and mini- common infrastructure challenges:

13 How to Protect Yourself Call Forwarding Scam Nancy Grover, SBC Security ͷ Carefully review your phone bill every Occurs when someone’s phone is call forward- month. ed to another location without their consent or >Telecom Fraud. ͷ Make sure you know what service was knowledge for the purpose of toll fraud. What Can You Do? provided, even for small charges. How it works – An imposter calls a person Telecommunications fraud Crammers often try to go undetected by attempting to get them to reveal the PIN on is the theft of telecommuni- submitting $2.00 or $3.00 charges to the customer’s call forwarding feature. With cation service or the use of thousands of consumers. the PIN, the line can be forwarded to telecommunication service to commit other ͷ Keep a record of the telephone services another location, typically internationally. forms of fraud. Victims include consumers, you have authorized and used – including Fraudulent calls can then be placed by businesses and telecommunication service calls placed to 900 numbers and other dialing the customer’s local phone number, providers. types of telephone information services. which has been forwarded to the interna- tional location, and the call is billed to the Telecommunications fraud dates back to the Calling Card Fraud unsuspecting customer’s phone. 1870’s when several teenage pranksters Telephone cards offer a convenient means were thrown off the country’s new phone of placing calls when away from the home or How to Protect Yourself network. Today, global fraud loss surveys put the office. Illegal use of stolen telephone ͷ Protect your call forwarding PIN by memo- the cost to victims at $35-$40 billion card numbers is one means by which phone rizing it and never writing it down. annually. This type of fraud shows no prefer- service is obtained by thieves. Calling cards ͷ If you suspect the PIN has been compro- ence to fixed lines, mobile phones, or and pre-paid cards are very vulnerable to mised, contact your phone service broadband telecommunications services, fraudulent use. provider immediately and report it. causing the communications industry to face ͷ Password protect your account to keep How it works – When a card is stolen, or an an ever-constant challenge. unauthorized changes from occurring. account number obtained by someone “Call Me Back” Scam Who’s Doing it and Why? looking over your shoulder at a pay phone, calls can be charged to your calling card. Relies on an employee’s attempts to Telecommunications fraud is a very lucrative These cards contain a number or passcode, provide good service and can result in career for some unsavory individuals who can which can be dialed in order to fraudulently hundreds and sometimes thousands of make thousands of dollars and more a year bill worldwide toll calls to the card, or to dollars worth of telephone service billing. by taking advantage of the phone system. resell toll calls to others. Criminal gangs are increasingly setting up How it Works – Your company receives a call their own cut-price telephone companies How to Protect Yourself regarding a product or service and requests selling services to anyone with money and a ͷ Memorize your calling card number. a return phone call. When your employee need, from other criminals, illegal immigrants ͷ Beware of people attempting to shoulder- returns the call, someone will answer and and refugees. A recent msnbc.com article surf to look at your card or record the make every attempt to keep your employee reported that one of New York’s most noto- keys that you press. on the line. To keep the caller from hanging up, a person may pretend not to understand rious mob families bilked customers out of ͷ Protect your card number and don’t share what the caller is looking for, they may $650 million in a phone billing scam. it with others – even people claiming to pretend not to understand English well, or Besides the obvious monetary gain, telecom- be “telephone security.”

May 2005 May indicate they are trying to locate the person ͷ Report a lost or stolen card immediately. munications fraud is committed to avoid toll being called. In the end, the results are charges, demonstrate intellectual superiority, Prepaid Card Fraud always the same. for entertainment, or to conceal other illegal These cards are purchased for later use in operations and retain anonymity. What is really happening is your employee placing telephone calls. Since the value of is calling a number outside the United the card is paid for up front, consumers Types of Telecommunications Fraud States. They are actually calling a service should be wary that the card might not work similar to a 900 service where the call is There are many different types of communi- when they attempt to use it later. billed back to you sometimes at hundreds cations fraud: toll fraud, subscriber fraud, How it works – Some criminals sell cards they of dollars per minute. ID theft, PBX Fraud, modem hijacking, fraud- know don’t work. Even if purchased from a ulent subscriber accounts, and prison A variant on this scam works by leaving call valid supplier, you should ensure you have collect calls among others. In the interest back numbers on pagers or cell phones. of space, I will discuss just a few of the recourse if the card is defective or if the When calling back, the unwitting caller is more common methods as well as a couple quality of service is inadequate. stuck with the bill. of the more clever varieties, and show you How to Protect Yourself How to Protect Yourself how you can protect yourself. ͷ Look for cards from an established ͷ Since calls to these numbers appear to Cramming company with a good reputation. If be calls to area codes within the U.S., it Occurs when services are added to a unsure of the company, test out their may be somewhat tougher to educate subscriber’s line without their authorization. service by purchasing a lower value card. users against this type of fraud. However, If you find the service is satisfactory, then you should make certain that you have How it Works – Dishonest, third-party suppliers buy a more expensive card. explained it to them. of data and communications service add ͷ Look for a toll-free 1-800 or 1-888 ͷ Consider blocking calls to these area codes: additional services to a consumer’s bill, number on the card, and check to see 264 Anguilla without their consent or knowledge. These 473 Grenada & Carracou charges are sometimes explained on the tele- that it is valid. ͷ 268 Antigua & Barbuda phone bill in general terms, such as “service Check whether customer service is offered in a language you understand. 876 Jamaica fee,” “service charge,” or “other fees.” 242 Bahamas 14 664 Montserrat systems that forward calls or messages to How it works – One scam is a result of down- 246 Barbados the mailbox owner. The bad guy programs loading programs from adult entertainment 869 St. Kitts & Nevis the remote notification service to forward to Internet sites. The download usually occurs 441 Bermuda an international number, and is then able to after the customer has “clicked” past a 758 St. Lucia make international calls on someone else’s disclaimer and entered the site. They may 284 British Virgin Islands “dime.” These break-ins usually occur then be prompted to download what 764 St. Vincent & Grenadines during holiday periods or weekends, appears to be a picture viewer or music 345 Cayman Islands allowing the tampered outgoing message to player that is required to obtain “site 868 Trinidad & Tobago go unnoticed. specific” features. Once downloaded, this 767 Dominica How to Protect Yourself program “hijacks” the modem by discon- 649 Turks & Caicos Islands necting the customer from their normal ͷ Insist that each user select a complex 809 Dominican Republic Internet provider and re-connecting them voice mail password of at least six digits, 340 U.S. Virgin Islands using a different provider. This new provider and change it regularly. ͷ If you or your company has no need to dial is generally located offshore with the call ͷ internationally, or seldom make such calls, If possible, block third party call billing to being billed to the unsuspecting user. A ask your carrier to block them. On the rare all of your numbers. user may notice on their phone bill, that occasion you need international access, ͷ Delete unused mailboxes. right after visiting the site, the long distance consider using a prepaid calling card. ͷ Check your recorded announcement regu- charges appeared. 900 Extension Scam larly to ensure the greeting is indeed yours. How to Protect Yourself In this scam, the hacker calls the main ͷ Consider disabling the remote notifica- ͷ Avoid sites when you are not sure of the number or toll free number of a business tion, auto-attendant, call forwarding and content. and asks an operator or receptionist for a out-paging capabilities of voice mail if ͷ Thoroughly read all disclaimers before transfer to extension 900. If the employee these features are not used. entering the site. transfers the call, the bad guy is connected The Yes Scam ͷ Don’t download programs unless they are to an international operator who completes Here is another twist to the Voice Mail from a known, reputable source. the call, on your company’s dime. Fraud scam. ͷ Have International, 809 (Caribbean coun- How it works – Most hackers/thieves under- How it Works – A bad guy dials into a voice tries) and 900 calls blocked, or a stand that not all systems are blocked from mail system looking for a mailbox that has complete toll restriction on the telephone this kind of attack. In most business systems, a default password or one that is easily line connected to the computer. 9 is the access code for an outside line and guessed, such as 1234. Once access is Other Signs Of Phone Fraud To Watch For 00 is the international operator. Hence, exten- obtained, the greeting is changed to sound ͷ sion 900 gives the caller international access. as if someone has answered the phone. A Sudden changes in normal calling Most companies do not have extensions in script would read like this: “Hello?” pause patterns. the 900 range for this reason. “yes” pause “yes, I’ll accept the charges.” ͷ Toll-free lines are busier than usual. ͷ If a receptionist tells the caller that they The thief then calls a service provider asking Increase in “wrong number” calls. don’t have an extension 900, the caller may ͷ Increase in “hang ups.” to have their call billed to the number of the UPDATE say the CEO told him to ask for that exten- hacked mailbox. When the carrier’s computer ͷ Increase in traffic outside of business hours. sion and was waiting for his call. If the calls to verify that the third party is willing to ͷ Increase in overseas calls. receptionist insists that there is no exten- accept the charges for a third party call, the ͷ Changes to voicemail greetings, or users sion 900, the caller may become more computer hears the script: “Hello?” pause unable to access their voicemail. insistent or threatening. “yes” pause “yes, I’ll accept the charges” ͷ How to Protect Yourself and the call goes through. Toll calls from unused extensions. ͷ Beware of any unusual requests. ͷ Educate your employees. It may not Once this greeting is set up, information on always be the receptionist who gets the the newly hacked mailbox, along with its tele- ͷ Do not follow a stranger’s instructions to call. Anyone can get a direct call with a phone number is quickly sold or given away. call a long distance or seemingly toll-free request to be transferred. number. These numbers can run up huge How to Protect Yourself ͷ Block calls to 900. If your company has per-minute bills. ͷ Insist that each user select a complex no need to call an international operator, Nancy Grover, Regional Manager-SBC Corporate then it should be blocked. voice mail password of at least six digits, Information Security, is responsible for the ͷ Ask your carrier to block international and change it regularly. company’s critical systems, including the core calling, if your company has no need to ͷ If possible, block third party call billing to network and the Network Operating Centers. She dial those calls. all of your numbers. is a Certified Information Security Professional. ͷ Monitor your phone bills for unusual calls. ͷ Delete unused mailboxes. The opinions expressed in UPDATE are not neces- sarily those of the SBC family of companies. Voice Mail Toll Fraud ͷ Check your recorded announcement regu- This type of fraud can cost many thousands larly to ensure the greeting is indeed yours. of dollars in just a single weekend. If a thief ͷ Consider disabling the remote notifica- Did You Know? learns your voice mail password, they can tion, auto-attendant, call forwarding and About 175 million Americans – about 62 listen to your personal voice messages, out-paging capabilities of voice mail if percent of the total population – now have change your password and take over your these features are not used. cellphones, with about half having the data- voice mailbox for their own purposes. Long Distance Fraud Using the Internet enabled phones needed for multimedia How it Works – Someone breaks into voice NOTE: This scam generally has impact for applications, according to an analyst with mailboxes that have remote notification Internet dial-up users only. the Yankee Group research firm.

15 for Voice and another for Data in order to Carlos Alas, Jr. Jagdish Kohli, Ph.D. streamline the terms and conditions which vary for both products, however, the >Contract Group discounts for both product suites will >Music & Mobiles always be priced based on the customer’s Update At A Glance The Long Distance Contract total spend with SBC. Music is universal. Digital Development Team has Long Distance contracts unlike 96A’s do not technology has played a joined the General Contract provide for Extensions. Six-month Extensions major role in popularizing Development Group offering are permitted by the CPUC in California for music with millions of consumers. Online both internal and external 96A customers who are in good faith negoti- music downloading has been enormously customers the benefit of one stop total service. ations with SBC for a new contract. By popular in the past few years. Mobile comparison, Long Distance Agreements typi- Contract Development at SBC is always handsets and wireless networks have tech- cally need to be re-negotiated prior to evolving alongside with our customers and nologically advanced to provide new expiration by either amending to extend the product offerings. As of January 1, 2005 the capabilities to music lovers all over the world. SBC Contract Development Group combined term or by re-negotiating a new Long Distance contract. In either case, a new pricing rate forces with the previously independent SBC Ring Tones in Mobiles Long Distance Contract Group. The ability of letter is needed to update the contract with our Sales Teams to now have a single point the applicable new volumes and pricing. NTT DoCoMo pioneered the mobile music market by introducing polyphonic ring of contact for all of their contract needs is Long Distance contracts can be superceded tones on i-Mode in 1999. Polyphonic ring designed to improve the contract process by mid-term to account for additional spend, new tones were a tremendous success, and a combining the resources, efficiencies and products or additional services. Early vibrant market for mobile music started to experience of both work groups. This serves Termination Fees (ETF’s) for Long Distance develop in Japan. Today mobile music in to enhance SBC’s ability to serve it’s custo- are 50% of the remaining term which is Japan represents a totally new Billion mers who typically are seeking a total different from the ETF’s in the 96A arena Dollar per year market for the benefit of solution to their telecommunications needs. where they vary from 55% for voice and 70% consumers, artists, composers and the In the coming months we can look forward to of the remaining term for both voice and data. music industry. In the meantime, mobile additional information in this column that Among other things to keep in mind when includes details and insights into Long music has become a substantial fraction negotiating a Long Distance contract is the of the music distribution market in Japan, Distance contracts as well as the many other fact that all contracts by their nature are contracts that are supported by the Contract replacing traditional music distribution “custom,” that means each one can be nego- methods such as CDs and DVDs and Group, including but not limited to; California tiated depending on the circumstances. Each 96A’s, Master Discount Agreements, Dedi- tapes. This trend has been carried over to Long Distance contract requires a customer other parts of the world. cated Internet Access, DataComm (Voice, Credit Review. In addition, bear in mind that Technological advances and improvements Video, Data, and Equipment), Internet Data Downsizing and Technology Upgrade clauses in the sound reproduction have been intro- Center, SBC Telecom, Extensions, Non- in these contracts are not standard and need duced constantly since 1999, and several Disclosure Agreements, Modifications and to be requested, authorized by pricing and new services and markets have been intro- Cal-Net type contracts. negotiated based on an individual case basis. duced in Europe, Asia and the US.

May 2005 May One of the first things to note about Long Distance agreements is their pricing flexibility Consumers can personalize their phones which is attributed to a less regulated envi- periodically by downloading emerging real ronment permitting greater pricing flexibility in Carlos Alas Jr. is an Associate Director in Contract ring tones or other available sounds. the Interstate arena provided that the pricing Development for SBC California. He has been with is not anti-competitive. In the intrastate arena SBC California nine years and previously held posi- Technological Challenges there are slight limitations in a few states. tions as Account Manager and Executive Briefing Most mobile consumers will want the Center Manager in San Francisco. He holds an ability to buy songs for their cell phones Another difference between 96A type con- MBA in International Management. tracts and Long Distance contracts is their without first needing to load them on their effective date. The Long Distance contracts “Do not wait for leaders, do it alone, personal computers before transferring them to the phones. This will require very are effective upon signature; however, it is person-to-person.” helpful to keep in mind that the rates are not high speed wireless connectivity. Major effective until they can be implemented in the Mother Teresa wireless operators are implementing 3G (third generation) wireless technology into billing system. This becomes important to SBC Executive News communicate to the customer as the term their networks. 2.4 Mbps (Mega bits per Bob Ferguson is SBC Group President & CEO- starts when the contract rates become effec- second) speed of a 3G network will be Enterprise Business Services, reporting to tive and there is no adjustment back to the higher than today’s wire-line Internet Randall Stephenson, Chief Operating Officer. effective date of signature. This contrasts connection speed. With this mobile users with 96A type Usage contracts, for example, Ray Wilkins is SBC Group President respon- will be able to download songs directly into that do allow for adjustments back to the sible for International, Yellow Pages and their phones in tens of seconds. effective date as authorized by the California Sterling Commerce, reporting to Ed Whitacre, Public Utilities Commission (CPUC). Chairman and CEO. In California, for example, Usage, Access James Callaway is leading the SBC-AT&T and Data can be combined into a Total integration planning efforts. Jagdish Kohli, Ph. D., is an independent IT and Billed Revenue contract. In the Long John Regan is Vice President of Business Healthcare consultant. Dr. Kohli can be reached Distance world there will be one Addendum Marketing at SBC. at [email protected]

16 >Introducing up2speed®business How Much Is 99 Euros? results? The key is limiting your search to A competitor sells a product similar to yours smaller, more relevant portions of the vast This following article first appeared in SBC World Wide Web. up2speed business, the monthly e-mail newsletter for 99 euros in Germany. How much is that for the company’s home-office and small-to- in U.S. dollars? Say, for example, you need information on medium business customers. The term to use is convert. Type in convert DSL troubleshooting. If you enter that 99 euros to dollars for the answer. phrase in the search window, you turn up It’s a quick read featuring how-to information, more than 300,000 results. productivity tips, tech trends, success stories, This also works for measurements – for quizzes, and special deals. Sign up for your free instance, convert 1.2 meters to feet… or To get fewer but more pertinent results, go subscription at http://www.sbc.com/up2speed. convert 2 pounds to kilograms. to SBC Yahoo! DSL or Yahoo! Advanced Web Search. What Time Is It In Tokyo? What Time Is It In Tokyo? In the “Show results with menu,” the default Get answers fast to this and other business You need to call your partner who is in Tokyo setting looks for words or phrases on any questions by taking Yahoo!® Shortcuts on business. What time is it there? part of the page. available via your SBC Yahoo! DSL portal or The shortcut is simply time in Tokyo… or Instead, select “in the title of the page.” Yahoo! Search. time in Oslo and so on. Now when you enter DSL modem, you net These convenient shortcuts return direct just 478 results. answers rather than lists of links. Here are Which Sites Link To Ours? Select “in the URL of the page,” and you’re examples of how they cut to the chase: Would you like to keep track of other down to 125. websites that link to yours? Really zero in by checking only search in Who Called? this domain/site. If you then type in, say, Your Caller ID or a voice message tells you The shortcut term is link: In the box, type link: sbc.com and enter DSL troubleshooting, someone has called from the 612 area followed by your web address including http:// – you get a manageable 10 results. code. Where’s that? for example, link:http://www.YourBiz.com. Other advanced options include limiting results In the Search box, type in 612 – and How Do I Deal With 313,000 Results? to certain file types (for example, PowerPoint or nothing else. Then hit search. At the top of PDF) or sites from a single country. the results, you’ll quickly see the call came What about more wide-ranging searches from a Minneapolis area code. that generate thousands or even millions of From SBC up2speed business, December 2004.

the more than 6,000 FreedomLink hot family and friends, share digital pictures of >Wireless Internet Access To spots at no charge, and pay just $1.99 a their vacation, obtain driving directions or Be Available In State Parks month with a one-year term commitment locate hiking trails or nearby restaurants. California State Parks and SBC thereafter. Park visitors who are not “I’m also very pleased that visitors to our Wi- Communications Inc. recently announced a currently SBC Wi-Fi customers can Fi enabled parks will have free access to new agreement that will bring wireless high- purchase a 24-hour SBC Wi-Fi session for state operated web sites, including our award- speed Internet access – better known as UPDATE $7.95 or a monthly SBC membership for winning site, www.parks.ca.gov,” Coleman said. Wi-Fi to the picnic tables, tents, RV spaces $19.95 and receive unlimited access to “Through our web sites, visitors can do an and cabins of more than 70 million visitors SBC hot spots nationwide. electronic exploration of our park system to who enjoy the State Park system every year. “We are living in a time when more and more obtain ideas for their vacation.” Wi-Fi is short for wireless fidelity, and it people are communicating through the Coleman noted that park visitors will enables park visitors with wireless-enabled Internet,” said State Parks Director Ruth benefit from free Wi-Fi access to state web laptop computers or personal digital assis- Coleman. “I think our visitors will appreciate sites such as www.reserveamerica.com tants (PDAs) to access the Internet at a new service that helps them stay in touch where they can make campground reserva- speeds of 50 to 100 times as fast as a dial- with family, friends, or even the workplace if tions, www.dot.ca.gov which provides updates up connection. need be, and so we are excited about on road conditions and www.gocalif.ca.gov, the Park visitors will be able to gain Wi-Fi launching this project with SBC.” state’s tourism site. access when they use a wireless device “We’re pleased to be the first Wi-Fi provider Officials said the addition of this technology within about 150 to 200 feet of a SBC hot in California state parks, providing travelers is not unlike the first pay phone that was spot located in the park. with the added convenience of wireless added to the park system in the 20th San Elijo State Beach, located outside of high-speed Internet access in remote century. The pay phone was used by people San Diego, is the first state park to offer areas,” said Lora Watts, president, SBC to stay-in-touch with family and friends. In SBC FreedomLink service. Over the next six California external affairs. “Now travelers the 21st century, people are asking for months, 84 other California state parks will will benefit from using our affordable and Internet access for the same reasons – to become SBC Wi-Fi locations, making this reliable Wi-Fi service at more than 700 loca- stay connected. the largest Wi-Fi deployment in any park tions throughout California and thousands system nationwide. The California state more nationwide.” park locations will be added to the more Consumers increasingly are using the “It is always with excitement that I than 6,000 hot spots that make up the SBC Internet to make their vacation and recre- wake up, wondering what my intuition Wi-Fi network, which is one of the nation’s ation planning easier, safer, and more will toss me. I rely on it, it’s my partner.” largest Wi-Fi networks. enjoyable. While at the park, visitors with Through April 15, 2005, SBC DSL Wi-Fi enabled laptops can send e-mail and Dr. Jonas Salk customers can receive unlimited access to instant messages to communicate with

17 the Street” in the small business/Valued John Capoccia accounts segment, to “up-market,” working Lowayne Shieh with our Global, Enterprise, Government, >SBC California Education, and Medical (GEM) and Signature >Changes & Helpful Out-of-Franchise channels to develop out of franchise oppor- Consultant Tips Expansion Update tunities for customers that already have a Alternate Channels Sales Support relationship with SBC Companies. Last year, we turned up Managers (SSM) are now in a centralized 63 new sites in Verizon The entire Out-of-Franchise team is available group called Diversified Sales Support territory, dramatically to assist with designing and implementing (DSS). Wendy Grimes, SSM, continues to expanding our Out of solutions to meet the needs of customers in support Consultants and Vendors. Here is Franchise (OOF) footprint in California. Verizon, Frontier and Surewest territories Wendy’s New Contact Information: Sales have been robust, and many former using SBC products and services. Phone: 949-838-8973 Verizon customers now enjoy SBC world SBC CA Out-of-Franchise Organization: Fax: 707-427-7524 class products and services. Our facilities Pager: 714-285-3050 Howard Lenox, Jr., Sales Vice President expansion is in two forms, by collocating, E-mail: [email protected] Attention: Wendy Grimes John X. McCarthy, Sales Director (placing our equipment) in Verizon Wire ͷ PRI due date interval has been reduced from 15 Centers, where we lease the “last mile” Sales Managers: business days to 7 business days copper loop from Verizon, and by building ͷ George Rodriguez (West LA territory – Santa ͷ Toll Free Service due date interval is only 1 out directly to the customer premise for Monica to Palos Verdes, and San Gabriel business day. high-bandwidth fiber-based services. Valley – Monrovia, La Puente, Azusa, Covina) Within our collocation footprint, we offer ͷ Morgan Douglas (San Fernando Valley – ͷ 1-800-332-1321 Priority Repair. Option 0 for Data Business Access Lines and Centrex to all Thousand Oaks to Lancaster) Reminder: Please obtain a trouble ticket customers segments, including small ͷ Eric Cabrera (South Beaches – Long Beach number when calling Priority Repair. To business. We also offer T1-based services to Laguna Beach) get a status or ask for an escalation, the such as Primary Rate ISDN (PRI) at very ͷ James Nichols (Inland Empire – Ontario, Up- trouble ticket number will help track reso- competitive prices. In fact, we currently have land, San Bernardino, Temecula/ Murietta) lution. Don’t close the trouble ticket until a Sales Director Authority program called ͷ Guy Smutz (Statewide Technical Sales) the problem or repair is resolved. “Eye of the Tiger” whereby we’ll waive instal- John Capoccia, Director, OOF Business Operations ͷ For Winbacks, a new version of Winback lation charges for new PRI installs on a two ͷ Charlotte Fraise, Provisioning Manager LOA is required. This LOA includes PIC year commitment. We’ll be officially launching ͷ Nancy Smith, Engineering Sales Support and LPIC change. Go to Bell Advantage web another T1-based product, T1 Integrated ͷ John C. Lee, Engineering, Information Tech- site to download the Winback LOA or call Access (T1-IAS) in the 2nd quarter of 2005. nology and Cost Support your CLM. In 2004, we expanded our Fiber build-out in ͷ Chris Gilpin, Interconnection Bell Advantage, a web site for consultants, is Verizon territory, increasing our fiber route- ͷ Renee Theiler, Pricing and Projects the best source for information about promo- miles from 86.5 miles to 126.5 miles. This ͷ Chris Lucas, Product and Legacy System tions, products and pricing. Please contact allows us to provide fiber-based services such Support your CLM for getting a user name and as GigaMAN and OC-N to customers that were John Capoccia, a Director in the SBC California password to get access to Bell Advantage.

May 2005 May previously too far from our installed base to be Out-of-Franchise Organization, has been with SBC Lowayne Shieh is a Consultant Liaison Manager economically served. Sales of GigaMAN has California since 1983. He can be reached on at SBC California. been one of our truly great success stories. In [email protected]. 2004, we installed 30 GigaMAN circuits to customers in Verizon territory, and have many more in various stages of the sales and imple- >Five-Year Optical Networking itan network solution. These services will mentation process. help protect KeyCorp’s data centers while Contract With KeyCorp establishing a single, flexible platform to We recently purchased a conduit run from a SBC Communications Inc. recently unleash financial applications that will help third-party supplier that will give us another announced a new contract with KeyCorp. drive top-line revenue. 35 fiber route-miles along the Union Pacific Cleveland-based KeyCorp is one of the “We rely on the SBC infrastructure to right-of-way from El Monte to Rialto. This route nation’s largest bank-based financial services transfer enterprise-critical data securely transverses the heart of the Eastern San companies, providing investment manage- and efficiently between our clients and our Gabriel Valley and “Inland Empire,” giving us ment, retail and commercial banking, locations,” said Al Coppolo, executive vice the opportunity to offer fiber-based services consumer finance, and investment banking president, KeyCorp. “The network solution in this rapidly growing corridor. products and services to individuals and SBC companies provided will enable us to companies throughout the United States. We’ve just received a favorable ruling from serve our customers better while expanding the California Public Utilities Commission In addition to renewing an existing contract our capacity and strengthening the that gives us the ability to offer fiber-based for core local services, KeyCorp also signed resiliency of our network.” services in the rapidly growing SureWest a contract with SBC companies to provide a “We value our relationship with KeyCorp (Roseville) territory starting in March 2005. Multi-Service Optical Network Ring (MON and appreciate the opportunity to provide Ring) that will include a Synchronous With the footprint expansion, we’ve re-organ- such critical services to its network,” said Optical Network (SONET) Dedicated OC-48 ized our sales team to ensure thorough Bob Ferguson, president, SBC Global & ring and OC-192 point-to-point and multiple market coverage. John X. McCarthy has Enterprise Markets. “Our optical networking Gigabit Ethernet and Fibre Channel circuits. assumed responsibility for all OOF sales. His services will help provide a solid foundation dynamic and energetic sales team works The services are expected to provide for KeyCorp’s data network while helping it across all market segments, from “Feet on KeyCorp with a highly scalable, metropol- maximize speed and reliability.” 18 38324_SBC.qxd 3/24/2005 6:02 AM Page 3

located in one depository with access to If you have questions about any of the SBC Cassandra Jessie-Johnson the messages from anywhere using their offers, please contact your Liaison Managers PC, telephone or wireless handset. to determine eligibility for your customers. >Highlights Voice Messaging: A basic voice mail product Across The Regions that has the capability to call transfer, allow Web Enhancements Real Time ANI Delivery inbound call integration, and provide In 2004 SBC introduced Check Order Status (RTAD) Enhancement Message Waiting Indicator (MWI) to to allow small business customers the ability customers telephone handset. to check their order status on the web, RTAD delivers the calling through the SBC website, www.sbc.com. SBC party’s 10-digit telephone Call In One: An integrated voice mail product ePayment was also made available to small number to the called toll-free customer for that combines wireline and Cingular business customers, providing them the purposes of identifying the calling party. RTAD Wireless®voicemail. This product also has capability to pay their bills online. cannot be blocked by invocation of Caller ID the capability to call transfer, allow inbound Enhancements in October 2004 introduced blocking on the part of the calling party. This call integration, and provide MWI to an IVR option as well. November 2004 initiative extends RTAD availability to all dedi- customers telephone handset. enhancements included the ability to estab- cated access trunk group types. This en- Call Tree: This is an Auto Attendant product lish recurring payments online. Look for hancement is available across all SBC regions. and will allow customers the ability to have additional communication as online enhance- inbound calls routed into various exten- ments continue throughout 2005. SBC Enterprise Messaging ServiceSM (SBC EMS) sions or directly to mailboxes (either SBC EMS is a new, family of messaging network based or CPE based). Cassandra Jessie-Johnson is Associate Director, products. It is a new “Next Generation” mes- Business Processes Team, SBC Central Sales SBC EMS features are also integrated with Operations. saging solution for Enterprise businesses. SBC PremierSERVSM Hosted IP Communi- It’s targeted for Medium to large Enterprise ®2005 SBC Knowledge Ventures, L.P. All rights cation Service (HIPCS) packages. business customers migrating from legacy reserved. SBC, and the SBC logo and other product/service names are trademarks of SBC voice mail and/or considering a paced migra- Packages and Promotions Knowledge Ventures, L.P. and/or its affiliates. tion to an overall hosted solution. SBC companies are committed to your busi- The family of messaging products include: ness growth. We have promotions and dis- Unified Communications: Provides Enterprise counted packages comprised of Local, Long “Only those who will risk going too far can customers the ability to manage their Distance services with SBC, as well as, SBC possibily find out how far one can go.” messages (e-mail, wireline voicemail, Yahoo! DSL, Cingular Wireless Voice & Data, Cingular Wireless® voicemail and fax) by and SBC Messaging. Prices vary depending T.S. Eliot allowing all the message types to be on exact configuration of the packages.

Wi-Fi locations, adding key airports and Wi-Fi networks. The roaming locations are in >Wi-Fi Agreements Will Expand other locations that are important to addition to the more than 6,400 nationwide Roaming Footprints business travelers. hot spots available to SBC Wi-Fi customers, UPDATE SBC Communications Inc. recently SBC companies will receive revenue including select McDonald’s restaurants, announced Wi-Fi roaming agreements with whenever Airpath and Boingo customers Barnes & Noble bookstores, Caribou Coffee Airpath Wireless (www.airpath.com), an inter- roam onto the FreedomLink network. These shops and The UPS Store®and Mail Boxes national Wi-Fi provider, and Boingo Wireless agreements are in addition to relationships Etc.®locations. (www.boingo.com), an industry leading Wi-Fi SBC companies already have with other “We continue to augment our Wi-Fi footprint network aggregator and service provider, that network aggregator including GoRemote, to provide even greater convenience and will help drive adoption of Wi-Fi, increasing iPass and Syniverse Technologies, to value to customers, especially our SBC access for SBC FreedomLink customers and receive revenue when their customers roam Yahoo! customers who want their DSL service generate additional revenues. on the SBC Wi-Fi network. ‘to-go,’” said Scott Helbing, senior vice presi- The agreement with Airpath adds 3,300 SBC companies also have agreements with dent, SBC consumer marketing. “The ability nationwide and international locations – Wayport Inc. and Sprint that provide SBC Wi- to access thousands of hot spots across the making more than 4,000 total roaming hot Fi customers with roaming access at more globe will enable our customers to experience spots available to SBC Wi-Fi customers. In than 700 nationwide hot spots including higher levels of productivity.” addition, SBC hot spots will be available to several major airports and hotels. SBC DSL customers can receive unlimited thousands of Airpath mobile computer users. Agreements with Concourse Communications access to the nationwide FreedomLink hot The agreement with Boingo will bring and Wise Technologies will further expand the spots at no charge until May 31, and pay increased traffic to the SBC FreedomLink FreedomLink roaming network once activated. just $1.99 a month thereafter. Soon SBC network from Boingo customers and from companies will offer a discounted subscrip- worldwide subscribers of Boingo’s Platform Also, SBC companies have a roaming rela- tion for SBC DSL customers that will Services partners. Boingo provides these tionship with Telmex, its first international include roaming hot spots. service providers with a turnkey Wi-Fi roaming agreement. The relationship is Non-SBC DSL customers can receive unlim- service that includes network access, reciprocal and will allow both SBC and ited access to the SBC Wi-Fi network for award-winning client software, and back- Telmex Wi-Fi customers to roam on the $19.95 a month, with a one year term office billing, roaming, mediation and providers’ Wi-Fi networks. commitment, and for $20 more clearinghouse services. For Boingo, the The SBC FreedomLink Wi-Fi network is one FreedomLink subscribers can receive unlim- agreement increases the company’s U.S. of the nation’s largest and fastest-growing ited access to the roaming locations. hot spot density with more than 3,400 SBC

19 Pop Quiz SBC Long Distance (SBC LD) Hierarchical Billing Labels 1. On average, how long do online shoppers spend on each web page? SBC LD customers, who receive a Direct Bill with Hierarchical Billing, have A. 29 seconds told us that a “Label” functions as a description of their organization and will B. 50 seconds allow them to easily identify their Hierarchy. This can help to reconcile their C. 71 seconds monthly billing statements. SBC LD has recommended that SBC LD Direct D. 92 seconds Billed customer accounts use these “Labels” that designate a predefined description (e.g., Department, Division, Subsidiary, BTN or a unique customer 2. In 2004, which word was looked up most online? defined label). This label helps define the BAN within the hierarchy and will A. Botox appear in the Invoice Account Summary section of the bill. This “Label” field B. Podcasting allows up to 20 characters, and is carried forward to eBAT (electronic Billing C. Blog Analysis Tool) for customers who subscribe. Use of the BAN Label is a great D. Nanotechnology way to minimize customer frustration regarding BAN changes. 3. Which would be the most effective computer password? A. IlTpbb B. Hoops C. 0856 D. Il!2pBb

Answers 1. A According to a recent e-commerce study, just 29 seconds. Since online shoppers move this fast, make sure your pages quickly get across key points. While time spent per page is down from an average of 43 seconds in 2003, both the percentage of online shoppers making purchases and revenue per session are up in 2004. Why less time per page? It could be the expansion of broadband Internet access. 2. C Blog – short for web log – was the “Word of the Year” on Merriam-Webster OnLine. 3. D Il!2pBb. According to the United States Computer Emergency Readiness Team, it would be the least likely in the list to be guessed or cracked. Both A and D are quirky abbreviations for a personal trait that’s easy to remember but hard to crack: “I like to play basketball.” D is stronger than A, since it includes numbers and special charac- ters. Relatively easy to guess are passwords that appear in the dictionary (like “Hoops”) or refer to birthdays, PINs, Social Security Numbers, or phone numbers (like “0856”). Thanks to readers Jose & Anne Marie Flahaux for sending us this delightful photo proving their granddaughter Sophia, 1, is fasci- nated by the thought-provoking articles in UPDATE. Sophia’s getting a jump on her peers by soaking up the latest on HIPCS, From up2speed business Wi-Fi, Project Lightspeed & Network Security. Gotta unique photo of an UPDATE reader? Please send it to the editor.Thanks.

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

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

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CVSG Leader Liaison Manager Editor/Communications/Seminars/Conferences 415.542.4516 949.855.5055 714.284.2370 e-mail: [email protected] Fax: 949.348.2941 Fax: 714.563.1736 370 Third Street, Room 711, San Francisco 94107 e-mail: [email protected] e-mail: [email protected] 16775 Von Karman Ave., Room 200, Irvine 92606 200 Center Street Promenade, Room 103, Anaheim 92805 Bree Nimitsilpa Helps Consultants and Vendors in the following area codes: 619, 714, 760, 858, 909, 949 and 951 Liaison Manager Graphic Design 415.542.1071 Jessica Becker/Sergey Chichkin Fax: 415.542.2648 Creative Graphics & Advertising e-mail:[email protected] Lowayne Shieh 312.727.1559 e-mail: [email protected] 370 Third Street, Room 711, San Francisco 94107 Helps Consultants and Vendors in the following area codes: Liaison Manager 209, 408, 415, 510, 559, 650, 707, 831, 916, 925 626.576.3045 Fax: 626.576.5081 Eric Aguirre e-mail: [email protected] Thank You for reading 1010 Wilshire Blvd., Room 1200, Los Angeles 90017 Data Administrator Helps Consultants and Vendors in the following area codes: e-mail: [email protected] 213, 310, 323, 562, 626, 661, 805, 818 UPDATE