AT&T Inc. is reorganizing its management, putting wireless chief Ralph de la Vega in charge of all consumer offerings as the telecommunications giant tries to better coordinate marketing of landline, mobile services, and VOIP phone services in the face of stiff competition.The management realignment is part of the continuing efforts at AT&T and rival Verizon Communications Inc. to link broadband, TV and mobile services more closely. Both companies are trying to license content for all platforms, and both have plans to sell ads across all "three screens."
The changes, confirmed by an AT&T spokesman, would organize the company into four divisions -- consumer, business, infrastructure and diversified businesses. Mr. de la Vega would retain his role as chief executive of the company's wireless unit, but that would be folded into a broader consumer markets division with responsibility over landline phone, Internet and TV service.
AT&T's moves could help the company come up with creative bundles of cellphone and Internet services that cable companies can't match. "The biggest impact of the reorganization will be on the cable companies, because they'll face a more unified consumer offering from AT&T," said Roger Entner, a telecom analyst at Nielsen IAG.
Cable providers have been gaining market share in the high-speed Internet market as phone companies' digital subscriber line, or DSL, services struggle to keep pace with faster cable broadband connections.
Meanwhile, Ronald Spears, who has served as group president of a unit focused on sales to large enterprises, will lead the new business unit.
John Stankey, who has been group president of telecom operations, will become chief executive of the infrastructure division. Ray Wilkins will remain CEO of the diversified businesses unit.
By: Amole Sharma
Wall Street Journal; October 1, 2008
