AT&T Wireless 2009 Annual Report Download - page 6

4 AT&T 09 AR Chairman’s Letter
data centers, and network security — all delivered with the world-class reliability AT&T
is known for. We’re managing and operating complex IP networks and technologies
for our customers so they don’t have to, allowing them to focus on what they do best —
running their businesses. And on top of the connectivity we provide businesses, we offer
industry-leading local business search and advertising capabilities — online, mobile, IPTV
and print — to help businesses increase their sales.
Unmatched global reach. AT&T not only offers customers solutions to run their businesses
in the U.S., we also offer them connectivity around the globe. Our network reaches
countries representing 97 percent of the world’s economy. With our global communications
capabilities — widely regarded as the best in the industry — AT&T is a leader in serving
large business customers, including all of the Fortune 1000, on six continents.
Investing in our future
We lead in all these areas because we have the largest and most advanced IP network
infrastructure in the world. This infrastructure supports our next-generation growth platforms —
both wireless and wired — which are taking to the next level what our customers can do on
the Internet, such as download videos to mobile devices or conduct High Definition (HD) video
conferences with their colleagues around the world. The global scale of AT&T’s IP infrastructure
not only provides users with what they need, it makes these shared solutions seamless and
affordable for all our customers — from consumers and small businesses to multinational
corporations. As a result, we’re seeing an explosion in customers’ data usage on our network:
for example, mobile data traffic has grown more than 5,000 percent in the past three years.
Approximately 70 percent of our revenues now come from wireless, wireline data and
managed services, up from 60 percent in the fourth quarter of 2007. These are the
growth engines of our future. And we have built an unsurpassed set of capabilities to
deliver on their potential.
Besides our market leadership in key growth areas, our financial results last year reflect
our disciplined management in tough economic times. We moved quickly to adjust our
cost structure and increase efficiencies across the board, giving us the ability to increase free
cash flow, raise our dividend and strengthen our balance sheet, while continuing to invest
aggressively in our network and associated growth opportunities.
We made $17.3 billion in capital investments in 2009, bringing our total over the past
three years to more than $55 billion — more than any of our U.S. competitors. We also
signed or completed nearly $5.5 billion in acquisitions in 2009, nearly all to expand our
mobile broadband coverage and capabilities.
Setting ourselves apart
Our leadership in mobile broadband — increasingly critical for consumers and businesses —
sets AT&T apart from our competitors and is the fundamental basis for our growth going
forward. Mobility is our No. 1 investment priority, including a planned increase of
approximately $2 billion in 2010 in wireless network and backhaul investment. It’s
at the center of the integrated communications solutions that give our customers the
power of the nation’s most advanced mobile broadband experience. I’m confident that
06 07 08 09
$1.35
$1.47
$1.61
$1.65
Dividends Per
Common Share
For 26 consecutive
years, AT&T has
demonstrated its
commitment to
stockholders with
increases in its
quarterly dividend,
and our dividend has
increased more than
20 percent in the
past three years.