AT&T 3Q07 VoIP and IPTV Update

• Access line reduction of about 588k during the quarter. Some of that is VoIP substitution. Majority is mobile substitution. There is also some migration within AT&T’s fixed line to AT&T’s cellular services. The company added near about 2 million new mobile customers during the quarter

• Reduction in business voice lines during the quarter: 190k. Line reduction due to IPPBX and hosted VoIP, and other competitive factors

• CallVantage VoBB subscribers: not sure about the number. If they have 13 million broadband subscribers, 10% of that is around 1.3 million. So if we are talking about 10% penetration, AT&T might have over a million VoBB subscribers. That seems very unlikely though. One correction to our 2Q07 post on AT&T: the company uses Sylantro for business VoIP, and not for consumer VoIP. For consumer VoIP (CallVantage) AT&T uses its home grown solution.

• 126k IPTV subscribers as of end 3Q07. Approached 10,000/week install rate at end of 3Q07. Launched in 33 markets across the United States

• 13.7 million broadband customers. Net additions during the quarter: 500k.

• AT&T has the largest wireless VoIP trunk deployment in the world. 3Q07 VoIP traffic is estimated at between 35 to 45 billion minutes.