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Keynote Presentation on 2009 China Travel Distribution Summit Spotlight: The Evolution of Mobile Implication in Travel Mobile technology is finally on the precipice of altering consumer travel planning behavior. New wireless applications and convergent devices are in the offing, forcing travel players to respond. The case studies from AT&T and Rakuten Travel will elaborate how the mobile technology is helping the travel companies improve the travel planning experience and make the real deal. Speaker: Ricky Heath, Travel and Transportation Head, AT&TTRANSCRIPT
Ricky HeathIndustry Solutions PracticeTravel and TransportationAT&T
The Evolution of Mobilityin Travel
TravelDaily 2009China Travel Distribution Summit
© 2009 AT&T Intellectual Property. All rights reserved.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this presentation based on new information or otherwise.
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Safe Harbor Statement
© 2009 AT&T Intellectual Property. All rights reserved.
Agenda
• AT&T Today
• Evolution of Mobility in Travel
• AT&T Mobility Solutions in Travel
• A Peek Ahead………
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AT&T Today
© 2009 AT&T Intellectual Property. All rights reserved.
AT&T Today
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Revenues$124.0 Billion
Earnings$12.9 Billion
Employees> 300,000CapEx
$20 Billion
Fortune #8Global #29
Cash from Operations
$33.7 BillionAnnual financials as of 12/31/08
© 2009 AT&T Intellectual Property. All rights reserved. 6
Singapore
DC MetroSan Diego
Amsterdam
NY Metro
Super IDCs
Additional AT&T IDCs
Super IDCs
Additional AT&T IDCs
UK
Japan
Asia/Pacific - 9 Super IDC: SingaporeOther Locations: Bangalore, Hong Kong, Shanghai (3), Tokyo, Osaka, Sydney
Asia/Pacific - 9 Super IDC: SingaporeOther Locations: Bangalore, Hong Kong, Shanghai (3), Tokyo, Osaka, Sydney
North America - 23Super IDCs: Annapolis, Piscataway, San DiegoOther Locations: Boston, New York, Secaucus, Ashburn, Atlanta (2), Orlando, Miami, Chicago (2), Dallas (2), Nashville, Mesa, Los Angeles (2), San Jose, San Francisco, Seattle, Toronto
North America - 23Super IDCs: Annapolis, Piscataway, San DiegoOther Locations: Boston, New York, Secaucus, Ashburn, Atlanta (2), Orlando, Miami, Chicago (2), Dallas (2), Nashville, Mesa, Los Angeles (2), San Jose, San Francisco, Seattle, Toronto
Europe - 6Super IDC: AmsterdamOther Locations: London, Birmingham, Frankfurt, Paris, Nice
Europe - 6Super IDC: AmsterdamOther Locations: London, Birmingham, Frankfurt, Paris, Nice
Additional expansions underway and planned for 2010Locations and dates are subject to change
We deliver services globally across a footprint of 38 IDCs, including five ‘Super IDCs’….
© 2009 AT&T Intellectual Property. All rights reserved.
AT&T is ……..
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1) More than telephones and boxes .....
2) Mobility, Mobility, Mobility!
Makes companies smarter and more productive
Not all about the iPhone.........(but a super cool
innovation, huh?)
3) Big Technology player and solution innovator
across the Travel Industry!
Evolution of Mobilityin Travel
© 2009 AT&T Intellectual Property. All rights reserved. 9
Passenger and operational mobile apps are now “must haves” for travel
companies
© 2009 AT&T Intellectual Property. All rights reserved.
Mobile spurs the 6th generation of travel distribution -- Travel 6.0
1960s 1970s 1980s 1990 – 1994
1995 – 1999
2000 – 2004
Original CRSs
Search, meta-search, blogs,
community, RSS
2005 – 2008
2009 –
Mobile
GDS deregulation, direct connects
Internet
In-agency CRS/GDS
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© 2009 AT&T Intellectual Property. All rights reserved.
The New Paradigm for the Web is Wireless
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• Over 4 billion global mobile subscribers in 2008
• Nearly 3 times as many mobile subscribers as personal computer users in the world today
• Over 1.5 billion Internet users worldwide in 2008
• The next billion internet users will first access the web on a mobile device
© 2009 AT&T Intellectual Property. All rights reserved.
Factors for Data Growth
Old Forms Get SmartEmerging Devices Gain TractionApps Go Mobile
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FacebookTwitter
LinkedInGmail
Myspace
© 2009 AT&T Intellectual Property. All rights reserved.
Wireless Data Growth at AT&T
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3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
Wireless Subscribers
4932% growth over 12 quarters!
Millions
© 2009 AT&T Intellectual Property. All rights reserved.
Welcome to the World of Socialnomics
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• Social Media is now the #1
activity on the web
• 80% of Twitter usage is on
mobile devices, people
update anytime, anywhere
• YouTube is the 2nd largest
search engine in the world,
100 million Videos
AT&T Mobility Solutionsin Travel
© 2009 AT&T Intellectual Property. All rights reserved. 16
AT&T Solution:Electronic Flight Bag
• Automates Aircraft Flight Deck Maps
Mission Critical Tasks
Document indexing
• AT&T network connectivity
• Flexibility with vendors
• Various modules fit to customer’s need
• AT&T can qualify / certify software packages
© 2009 AT&T Intellectual Property. All rights reserved. 17
AT&T Solution:Roving Agent
Improved Operations Management
Ability to Sell Anything - Anywhere
Airline personnel service passengers more quickly than queuingat a kiosk or a flight information counter
= Additional Revenue
© 2009 AT&T Intellectual Property. All rights reserved. 18
AT&T Solution:Cashless Cabin
• Immediate Credit Card transactions– Cash no longer necessary
• Secure network for credit cards
• Meshes well with unbundling strategies
• Huge revenue opportunity!
A Peek Ahead…….
© 2009 AT&T Intellectual Property. All rights reserved.
Near Field Communication (NFC)
NFC-EnabledPhone
Airline.com
www.airline.com/FFmiles+
MAG I.D. / CTNLocation
Handset Type“Wallet” Info
Etc.
Personalized & relevant information w/o need for
additional user input
Airline
www.airline.com/FFmiles
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© 2009 AT&T Intellectual Property. All rights reserved.
Thank You
Extra Slides
© 2009 AT&T Intellectual Property. All rights reserved. 23
AT&T SMARTrack
• It is a Dispatch and Recording System:
– of performed aircraft services.
– that is run in real time using GPS and 3G network.
– to accurately see ground performance.
– for automatic billing and record keeping.
– Anywhere - worldwide!
Flights Depart on Time!Flights Depart on Time!
© 2009 AT&T Intellectual Property. All rights reserved. 24
AT&T PAXTrack
• Management and Reporting of Passengers with Reduced Mobility Unaccompanied minors
• Elimination of costly fines for airlines
• Enabled by AT&T cellular network
© 2009 AT&T Intellectual Property. All rights reserved.
Self-Service Functionality
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© 2009 AT&T Intellectual Property. All rights reserved. 26
AT&T’s Global Network
• 547,000 fiber route miles
• 38 Internet data centers across the globe
• Dedicated MPLS access from over 3,700 nodes
serving 143 countries
• Wired Ethernet from over 1,600 access points
in 17 countries
• 14.5 petabytes of traffic on an average business day
• Customer care 24/7 service
© 2009 AT&T Intellectual Property. All rights reserved. 27
Legacy Mobile Devices
•Slow processing speeds•Low resolution screens•Small memory capacity•Large/bulky batteries•Limited Input/Output
Today’s Mobile Devices
•Faster processors•High res screens•Huge memory capacity•Slim compact batteries•Flexible Input/Output
• Touch• Voice• Projection
The Lines Are Blurring
All Computing devices will Communicate
while …
All Communications devices will Compute!
© 2009 AT&T Intellectual Property. All rights reserved.
+84% Adoption of Self-Service Check-In +84% Adoption of Self-Service Check-In TechnologyTechnology
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……Up from 64% in 2008Up from 64% in 2008