Benefits from strong presence as one of the largest incumbent local telephone providers, with 53 million access lines; Financial metrics remain relatively strong, even with incremental debt incurred to fund its 60% share of Cingular Wireless LLC's acquisition of AT&T Wireless Services; Extensive residential broadband footprint; Continued growth in long-distance business, with 22 million customers; Substantial wireless presence, with its 60% share of Cingular; and Will benefit from enhanced access to the large enterprise market with the acquisition of AT&T Corp., expected to close in early 2006. Significant tax-adjusted unfunded pension and OPEB liabilities; Increased local voice competition from the cable TV operators as they implement voice over Internet protocol (VoIP)-based services Current lack of a video offering other than
