Making AT&T, an IP Services Company


eslambolchi.jpgAT&T wants to shed its phone company tag, and become the IP network services provider, and its chief technology officer Hossein Eslambolchi is the man to do the job. The New York Times looks at how Eslambolchi is helping lead the transformation of the company to higher value services, such as security, and why despite all the gloom-and-doom around Ma Bell, there is still some hope for the company. The company is furiously cutting costs, its work force and automating the enterprise at a furious pace. It was primarily the reason why the company was about to show profits of $625 million in the most recent quarter, even though revenues sank 10.2% to $7.3 billion. I have known Eslambolchi for a few years, and we have met on many occasions. Each time, his vision of an IP-enabled Ma Bell rings more true, though I suspect he has a lot of hard work ahead of him. He always talks about advanced services as a way out of the curse of commoditization, and in 2004 his words rang true. Advanced services grew 13 percent in 2004 and now account for 10 percent of sales in AT&T’s business group, though I suspect a much smaller percentage of the overall sales.

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