* Security to be $40 bln market for corporate customers
* Watching dynamic of US market after Sprint-Softbank deal
BARCELONA Nov 14 Companies will double or
triple spending on cybersecurity in the coming years as attacks
grow more sophisticated and frequent, creating a billion dollar
business opportunity for U.S carrier AT&T Inc, it said on
Attacks on AT&T networks have doubled in the past four
months and now tend to be more targeted to evade detection,
Frank Jules, president of AT&T's global enterprise unit, said at
the Morgan Stanley TMT conference.
"We see them on a daily basis and they are now getting
smaller instead of coming in huge waves, which were easier for
us to detect," he said.
"Every chief information officer at major corporations that
I meet wants to talk about security. I think this will be a $40
billion market one day."
Jules said AT&T's strategy for its global business solutions
unit was to accompany big multinationals as they expand overseas
to provide them not just with connectivity but new products and
services like security and machine-to-machine technology, which
puts mobile SIM cards into everything from cars to vending
AT&T said in early November it would boost capital spending
on its U.S. network by about 16 percent to $22 billion a year
for the next three years to upgrade its wireless and wireline
The announcement came after two consolidation deals this
autumn look set to change the competitive landscape in the U.S.
telecom market in which Verizon and AT&T are leaders and Sprint
Nextel Corp and Deutsche Telekom's T-Mobile are trying to
keep up with their network and marketing firepower.
Japanese mobile operator Softbank Corp announced in
mid-October it would buy about 70 percent of Sprint for $20.1
billion, which some have predicting will give Sprint the capital
to expand its network and potentially buy peers.
Deutsche Telekom is also seeking to merge its
T-Mobile USA unit with smaller rival MetroPCS in an
effort to keep up with larger operators in the United States.
Competition regulators scuppered a plan for AT&T to buy
T-Mobile last year over concern it would lead to higher prices
for consumers and a worse service.
Asked to comment on the Softbank deal, Jules said it was too
early to see how newly-strengthened Sprint would impact the
"We wish we were able to buy T-Mobile, but we weren't
permitted to do that. This new Sprint will be a competitor that
we'll watch very closely," he said.