AT&T and BellSouth Create Global Communications Company

By Anuradha Shukla

TMCnet Contributing Editor

 

AT&T Inc. has closed its acquisition of BellSouth (News - Alert) Corporation to create a premier global communications company.

The new enterprise is committed to drive convergence, continued innovation, and competition in the communications and entertainment market.

The move reportedly consolidates ownership and management of Cingular Wireless, a provider of wireless voice and data services, and YELLOWPAGES.COM, a Internet Yellow Pages and local search site.

AT&T (News - Alert) Chairman and CEO Edward E. Whitacre Jr. believes AT&T will be an engine for innovation, competition, and growth for their customers at home and abroad.

While in the Southeast, AT&T will build on BellSouth’s excellent record of serving customers and communities, it is poised to lead the way in a new era of integrated wireless services nationwide.

A carefully planned integration process will be implemented immediately by AT&T to converge the AT&T, BellSouth, and Cingular (News - Alert) wireless and wireline Internet Protocol (IP) networks, combine product portfolios and integrate customer care capabilities.

The new company will not only accelerate the introduction of innovative broadband services, such as IP-based services, but also expand the reach of broadband access in remote and rural locations in the traditional BellSouth region.

“AT&T, BellSouth, and Cingular have led in developing and deploying many of the communications services that customers depend on today, including broadband DSL and wireless technologies,” said Whitacre in a press release.

“Moving forward, AT&T will work to integrate these services for customers in the Southeast, across the country and around the world,” he concluded.

The complete merger will enable AT&T to enhance its U.S. leadership position in broadband, wireless services, voice services for consumers and businesses, and data services to Fortune 1000 companies.

Whitacre will continue serving as chairman and CEO and as a member of the board of directors. For the transition period following the merger, Duane Ackerman will serve as chairman emeritus of BellSouth.

The corporate headquarters of AT&T will remain in San Antonio. The new AT&T Southeast (formerly BellSouth Corporation) and Cingular will continue to be based in Atlanta.

AT&T plans to launch extensive new advertising, which will begin the transition of the BellSouth brand name to AT&T. Through a co-branded transition AT&T will re-brand Cingular in 2007.

YELLOWPAGES.COM will not undergo a name or Web site address change.

BellSouth’s common stock and debt securities will be immediately delisted from the New York Stock Exchange in connection with the completion of the acquisition.

AT&T Inc. is a premier communications holding company in the United States and worldwide, with operating subsidiaries providing services under the AT&T brand.

Want to learn more about IP-based communications services? Then be sure to check out TMCnet’s Whitepaper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers whitepapers, case studies and other documents which are free to registered users.

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Anuradha Shukla is a contributing editor for TMCnet, covering call centers, CRM and information technology. To see more of her articles, please visit her columnist page.