CWAG July 11, 2011 New Connections for a Digital Life Tammi Terrell Vice President-General Manager San Diego, Las Vegas, Hawaii – AT&T

Where did we come from? 2

A new concept for Mobility in communications Communications extend to the car The cell phone becomes personal National plans (no roaming), free nights and weekends, rollover minutes Explosion in texting, , and MMS Smartphones - vertically integrated with apps Hyper-Competition + Technology = Innovation and Value 3 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

The Industry is Changing Dramatically… 4

The Rapid Changing Face of Wireless Source: CTIA/Gartner Wireless Industry Penetration © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

Petabytes/month 6

Petabytes/month 7 AT&T projections

The U.S. leads the World in Mobile Broadband, AT&T leads the U.S. © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 8 Mobile BB Subs 2010E (millions) Smartphone Sales 2011E (millions of units) Application Downloads 2010 (in millions) The U.S. leads the world in mobile broadband subscribers And AT&T leads the U.S. Source Parks Associates, June 2011 Source: Strategy Analytics, Global Smartphone Sales Forecast by Country, Jan 2011 Strategy Analytics, Feb 2011 The U.S. leads the world in smartphone sales And AT&T leads the U.S. The U.S. leads the world in application downloads And AT&T leads the U.S.

So, what is the next big thing? 9

Connected Devices = The Next Big Thing… 10 PNDs Digital Cameras/ Camcorders Computing In-Car, Telematics Connected Home eReaders The AT&T Networks Wireless + Broadband Wi-Fi + International Tracking Devices Picture Frames Tablets Healthcare © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Gaming Devices

Rapid Growth of Connected Devices Our vision is that by 2020, we will have 50 billion connected devices - Ericsson CEO, Mar 2010 There will be 1 trillion devices connected to the Internet by Cisco CTO, Mar Billion connected devices by telecomseurope.net, Feb 2010 Shipments of connected CE devices are forecasted to grow at a rate of 65.2% (CAGR) to reach 271 million in Berg Insights, Feb 2011 Machine-to-Machine traffic to increase 40-fold between 2010 and Cisco VNI Mobile Forecast, Feb © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property.

What trends do we see coming in this space? 12

Trends in Emerging Devices 13 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Integration Empowered by the Smart Device… Tracking Devices Track what’s important Monitor vital stats Use geofence parameters Picture Frames Share memories as they happen Manage control remotely Healthcare Dosage reminders – text or voice Family alerts to ensure adherence Track adherence over time eReaders Purchase content anywhere Share content across devices Optimize reading experience

Trends in Emerging Devices 14 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Extending connectivity to the car… Tethered Solutions Leverage content & apps from smartphone Streaming audio & video Access to web, cloud for entertainment Embedded Solutions Engine, system diagnostics Auto crash notification Stolen vehicle assistance Navigation, local search Emergency voice calls Remote Unlock, Remote Start Real-time traffic, weather, parking State of charge & Pre-Conditioning for EVs

Trends in Emerging Devices 15 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Synching it all up with the home… Home Automation Moisture Sensing, Water Shut Off Temperature Control Garage Open/Close Lights On/Off/Dim WiFi Touch Pad IP Cameras Synchronization The home becomes the hub of personal data Access via any web-enabled device Share content across all connected devices Transition experiences between devices

How Do We Get There? 16

Sustained Investment: $19 Billion committed to build out AT&T networks in 2011 Accelerated LTE deployment planned to be largely complete by end of 2013 With merger, AT&T can commit to cover 97% of all Americans with LTE Building the Nation’s Most Advanced Mobile Broadband Experience © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. 17

18 © 2011 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. Demand is exploding Innovation is soaring Consumers will benefit Increased capacity is critical to growth

Thank You! New Connections for a Digital Life Tammi Terrell Vice President-General Manager San Diego, Las Vegas, Hawaii – AT&T