Why are you moving to this so-called Global Branch Network? We have outgrown our satellite technology, and it's important for us to have new a conduit because we really need to provide the best tools to our financial advisors. We have great tools already but need to continue to improve them to support financial assessment software and e-learning. AT&T's terrestrial lines enable us to do that. Satellite communications were limited in terms of bandwidth. This new technology gives us the ability to beef up our systems.
How is this working out? We have 10,000 branch offices, with one financial advisor per office, so the system will grow as we add offices. But already from a response-time standpoint, using land lines has dramatically improved response times, so the network will not only allow more applications but [also] help them run faster.
How much faster is the response time compared with the satellite network? The response time on Web-based interactions is down by 75 percent. Currently, we have 4,000 offices already converted. We started with AT&T about six months ago, and the due date for the conversion of all 10,000 offices is July 31. We're pleased with AT&T that it has met an aggressive time schedule.
What do you plan to do in terms of converging network traffic? Our goal is to converge data, voice and video into one network. Previously, we moved video over satellite and then to TV monitors from the satellite. Through these new lines to the desktop, we can converge [everything]. Satellite is really great for streaming video but not for two-way data communications, such as Internet traffic.
Is AT&T relying on a single technology vendor for the network gear? It's multiple vendors, with different vendors for different network layers.
And you set the standard of service? AT&T has to meet service-level agreements that we set, so they put in the equipment and switches to meet those SLAs.
Had you gotten many complaints about the satellite network from your users? We have an anonymous electronic suggestion box, and our financial advisors and branch-office administrators gave us constant feedback. It was dramatic stuff, yes. There was recognition across the firm that a change was needed. And now they're giving us great feedback on the new network, and we also look at the bandwidth numbers and other measures through out own independent measuring tools.
So how did the satellite network come about in the first place? It was the right decision going to satellite back in 1988, and it's the right decision coming off satellite in 2006 and 2007. It was very reliable, with two uplinks in Tempe, Ariz., and St. Louis -- uplinks came from Tempe about 80 percent of the time, where there is usually beautiful weather. But with bad weather in a given region, you'd have interference. But the main thing now is that satellite is not great for the scale of the Internet.
AT&T said it's creating a global VPN based on MPLS technology. Was that partly why you picked it over rival vendors? We looked at multiple vendors, but AT&T could deliver and do so at a good price point. We felt they had Edward Jones's priorities in mind and could meet our aggressive time schedules.
Will this result in any savings over the satellite network? Moving from satellite to terrestrial will be more expensive. But new, more sophisticated tools will be delivered, and the new network plays a critical role in their delivery. The cost is well worth it.