$this->bbcode_second_pass_quote('', '[')size=150]SBC to take AT&T name[/size]
11:51 AM CDT on Thursday, October 27, 2005
By TERRY MAXON / The Dallas Morning News
When AT&T Corp. executives updated investors last Friday about their third quarter earnings, it had all the flavor of a retirement party for AT&T.
“It’s been great working with you, and good luck,” one analyst said, mindful that AT&T is scheduled to disappear inside SBC Communications Inc. Added another analyst: “Thanks very much and if I can add my best wishes to you as well.” “Good luck,” echoed another.
As it turns out, the AT&T name won’t be retired. SBC, which takes over control of AT&T later this year, announced Thursday that it will take the AT&T name when the merger is completed.
The decision, which keeps alive one of the most recognizable names of any American company, comes after SBC executives struggled to decide whether AT&T’s name recognition and reputation outweighed any negatives of the old, monopolistic Ma Bell. In the end, SBC decided the positives trumped the negatives.
“The AT&T name has a proud and storied heritage, as well as unparalleled recognition around the globe among both businesses and consumers,” SBC chairman and chief executive Edward E. Whitacre Jr. said Thursday.
“No name is better suited than AT&T to represent the new company’s passion to deliver innovation, reliability, quality, integrity and unsurpassed customer care,” he said. “This is the brand that will lead the industry in delivering the next generation of communications and entertainment services.”
SBC has established its own brand through much of the middle and western portions of the United States. Born as Southwestern Bell Telephone Co. in the 1984 breakup of the old AT&T, the company changed its name to SBC Communications in 1995.
In 1997, SBC bought Pacific Telesis Inc., which owned Pacific Bell and Nevada Bell. In 1999, it added Ameritech, which served customers in Midwest states.
But while well known in the Southwest, West and Midwest, SBC had a harder time establishing a national reputation, particularly among enterprise, or big business, customers.
SBC noted Thursday that the AT&T brand is “especially strong” in the enterprise market, and has high name recognition: 98 percent of U.S. consumers and nearly all businesses are aware of the AT&T name, with nearly as high numbers internationally.
“The AT&T brand reflects what customers are looking for in a provider,” Mr. Whitacre said. “They want the latest technology and services, but they also want reliability, quality and trustworthiness. Only the AT&T brand offers this ideal combination of traits.”
David Dorman, chairman and CEO of AT&T, said he was “very pleased” that SBC was keeping the AT&T brand.
“This decision is a powerful endorsement of the enduring strength of the AT&T brand, which is far and away the most recognized communications brand in the U.S. and around the globe,” he said.
