It’s interesting that as Skype announces a retail distribution deal with Radio Shack, SBC is launching a branding strategy aimed at positioning a “web-friendly” no-caps version of the AT&T name as a dominant brand in the era of IP-based services. So, as the leading digital disrupter of telecom business models extends its reach into the mainstream, a resurrected Ma Bell hopes to revitalize (or at least salvage) the RBOC business model by harnessing it to the power of IP technology.
As USA Today reports:
The overhaul is aimed at freshening up the brand, [CEO Ed] Whitacre says. He says the pint-sized letters, reminiscent of alphabet soup, were a tough sell internally. “We agonized over the letters,” says Whitacre, who made the final call on the name and the logo. He says marketing people finally convinced him that the new look was more evocative of the Internet generation: “They tell me it’s more trendy and modern.”
Russell Beattie isn’t as convinced as Whitacre. He says the new AT&T logo “sucks.”
The Wall Street Journal discusses the AT&T strategy and some of the challenges it faces:
AT&T wants to be the first major carrier that will use Internet technology to deliver all forms of telecommunications services in the U.S. That may give AT&T a head start and a cheaper way to offer features that combine the three screens — PC screens, phone screens and television screens…[But] competitors scoff at AT&T’s ability to carve out significant market share in a business thoroughly dominated by cable and satellite companies that are aggressively competing with each other…Moreover, AT&T still faces major political and technological hurdles. The cable industry is girding for a major legal battle because AT&T believes it can offer its service without making the kind of deals with local governments required of cable operators…At the same time, it’s still not clear how long it will take AT&T to master Internet technology.
The USA Today story quotes Whitacre as saying “it will drop the Cingular name in favor of the AT&T brand.” It also includes a quote from BellSouth spokesman Jeff Battcher that suggests his company does not see the name change as “an issue.” [SBC/AT&T owns 60% of Cingular and BellSouth owns the other 40%]
But Endgadget has some additional reporting on the Cingular name change:
Update: Cingular fans, we have good news - as reported by RCR, apparently Cingular spokesman Clay Owen said they “are continuing with the strong Cingular brand that we have spent the past five years building and promoting.” In other words, it looks like USA Today’s report was predicated on some miscommunicated information - SBC is changing its name to AT&T, yes, and they plan on resurrecting AT&T branded wireless service, yes, but apparently as something more akin to an MVNO leasing Cingular’s network capacity. So if we’re to believe RCR on this, then Cingular stays, AT&T wireless is back as an MVNO in “select” markets, and all is well.
That makes the second time in about as many weeks that comments by Whitacre stirred things up a bit. By this time next year, the outlines and prospects of his company’s IP-based strategy should be a lot more clear. The prospects for clarity on the regulatory front by that time, however, don’t seem too good.
Mitch Shapiro at 5:58 PM|Comments(0)
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