Technology changes, challenges AT&T

GARY | In the telecommunications business, the only constant is change, and the technology revolution is fueling that change.

AT&T Indiana President George Fleetwood brought that message to the Gary Chamber of Commerce at the group's monthly meeting Monday.

Indiana has created an environment conducive to business through deregulation in 2006, Fleetwood said. That has led AT&T to invest nearly $1 billion in capital projects throughout the state to upgrade the infrastructure since 2009.

That investment has been spent on adding fiber optics to AT&T's landline network and increasing the number of cell towers in Indiana.

When someone uses a cellphone or other mobile device, the signal is carried by radio waves to a cell tower. The signal then drops down into the land line network and is carried to another tower, Fleetwood said.

AT&T and other providers bought those radio bandwidths from the federal government when television was changed to digital broadcasting.

However, the technology revolution will continue to challenge the telecommunications giant in the future, Fleetwood said.

In the last decade, Hoosiers have embraced wireless communication. Land line customers have dropped from 2.3 million to less than 1 million in Indiana since 2000. The number of wireless customers has grown from 1.5 million to 5.5 million in that same time.

"Data traffic is just exploding," Fleetwood said about the ability of customers to access the Internet on mobile devices.

The problem is that AT&T will run out of radio signal or bandwidth by 2014.

"That's why we were trying to buy T–Mobile – not for their customers but for their radio signal," Fleetwood said. "Opposition came from the FCC and the Department of Justice. Their concern was a reduction in competition, but there still would have been five companies. We believe there would be plenty of competition."

Fleetwood said the federal government or another entity needs to address the issue of more radio signals.

Currently, AT&T Indiana is also seeking more legislative action, Fleetwood said.

One chief concern is the growth of a state–subsidized ILike network that is sponsored by Indiana University. Already in the higher education market, IU wants to expand that network into its health care system of hospitals and other health care facilities.

"Health care is a big customer for us," Fleetwood said. "ILike is not taxed. We can't compete with a subsidized company."