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Mega-Merger Transforms SBC into AT&T
By ROBERT LIU
TMCnet Wireless and Technology Columnist
Just one day ahead of a key regulatory review of its proposed acquisition of AT&T, SBC Communications has unveiled an extensive plan to re-brand itself using the world-renowned name of its one-time parent company, Ma Bell.
The regional
Bell operating company (RBOC) said it will adopt all intellectual property rights associated with AT&T following completion of its acquisition, which is expected in late 2005. The decision means that AT&T won’t be relegated into the annals of corporate with names like Burroughs, Speery, UNIVAC and NCR (which ironically AT&T gutted and reshaped into the company by which it is known today.)
“No name is better-suited than AT&T to represent the new company's passion,” said Edward E. Whitacre Jr., chairman and CEO of SBC Communications.
The decision comes one day before the Federal Communications Commission will hold an open meeting to discuss the impact of SBC/AT&T and Verizon’s $8.5 billion bid to acquire MCI on wireline competition. But while Verizon has faced considerable opposition principally from telecom carrier services company XO Communications, response to SBC’s overtures have been relatively benign.
By banking on the AT&T name, SBC is clearly hoping to capture the momentum that AT&T has created in based on Internet Protocol (IP)-based communications and next-generation platforms, which represents key growth areas for RBOCs as evidenced by Verizon’s strong wireless performance in its latest quarter. While SBC has faced resistance in the rollout of its IP video service dubbed Project Lightspeed, AT&T continues to make significant in-roads in voice over IP (VoIP) both at the enterprise level and with its AT&T Callvantage consumer offering.
Ironically, SBC was once known as AT&T prior to its government-mandated split-up in 1984, which also gave birth to NYNEX, Bell Atlantic, Ameritech, BellSouth, SBC, Pacific Telesis and US West – collectively known as the “Baby Bells.” Only four RBOCs still remain.
Upon completion of the merger, SBC said it will unveil a fresh, new logo and “the largest multimedia advertising and marketing campaign in either company's history.”
No decision has been made yet on a new stock market ticker symbol.
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Robert Liu is Executive Editor at TMCnet. Previously, he was Executive Editor at Jupitermedia and has also written for CNN, A&E, Dow Jones and Bloomberg. For more articles, please visit Robert Liu's columnist page.
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