Benefits from strong presence as one of the largest incumbent local telephone providers, with 53 million access lines Financial metrics remain strong, even with incremental debt incurred by 60%-owned Cingular Wireless' acquisition of AT&T Wireless Extensive residential broadband footprint Continued growth in long-distance business, with 19.8 million customers. Substantial wireless presence with its 60% share of Cingular Significant tax-adjusted unfunded pension and OPEB liabilities Increased local voice competition from the cable TV operators as they implement VOIP-based services Lack of a video offering other than through partnering agreement with DBS provider EchoStar Ongoing competition from the cable companies for residential broadband services Integration risks and technology challenges associated with the acquisition by Cingular of AT&T Wireless The rating on SBC
