Why They’re Smiling at SBC, Not AT&T


Business Week recently published a piece on how everything is smelling like roses in the new AT&T (SBC+old AT&T). CEO/Chairman Ed Whitacre told the Wall Street crowd, that ‘”Merger integration is on a good track, and we continue to execute well on all fronts.” COO Randall Stephenson told Business Week pretty much the same thing.

AT&T’s legacy business is a very fast-moving, heavy-negotiated type of business. It’s a very different type of business than what we had on the old, legacy SBC side. The last thing you want to do is change that laser beam-type of focus, that deal kind of culture. So what we are doing is taking that SBC business and effectively shutting it down and forklifting all of that onto the AT&T platform and letting that AT&T environment drive the business segment going forward. So we’re trying to really assimilate our business side to the AT&T culture. We don’t want to mess up what has been created over the last couple of years.

Not quite actually! Former CEO David Dorman is out of the door. Rest of the senior management has been whacked and replaced by the Texas crowd.

There was some talk about how the second tier of old-AT&T management was staying put in place. Looks like the second tier ranks are beginning to thin as well. Behzad Nadji, chief architect of old AT&T added SBC labs to his portfolio. A few months later he has left the building, and his role has been taken over by SBC Labs President & CEO Keith Cambron. SBC spokesperson did confirm that. Meanwhile Andy is reporting that there are “pink slips” coming at Level 3 and SBC.

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