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November 22, 2005
AT&T and BellSouth: Cingularly at Odds
USA Today reports that now that SBC has completed its acquisition of AT&T, it will resell Cingular Wireless's service under AT&T brand (remember, Cingular acquired AT&T Wireless a while back). This resale deal begs the question: What's BellSouth going to do?
SBC owns 60% of Cingular, while BellSouth owns 40%. The two companies could have resold Cingular wireless service under their own brands before, but they didn't. Now, that's about to change. And the USA Today article quotes CEO of the new AT&T (that is, AT&T merged with SBC) as saying the relationship between the two companies might get a bit strained because of AT&T's resale plans.
Well, yeah! With technologies such as VoIP now offered by most telcos, SBC and BellSouth are increasingly turning from colleagues into competitors. So BellSouth will now have to respond to AT&T's resale plans by making a move of its own.
My bet is, BellSouth will have to start reselling Cingular's wireless under its own brand, too -- and soon.
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This alphabet soup is getting hard for consumers to keep track of. The Sprint/Nextel combo is starting to sound better and better.
Posted by: ChiRich at November 29, 2005 11:32 AM
Google Go Glossy
Anyone research how many buyers go direct from Business Week to sellers web sites? The power of print plus web is the most powerful marketing tool availble today.
Posted by: Paul B. Beatty at December 3, 2005 01:24 PM
I have never had such a bad business experience as when dealing with AT&T and now it appears that we are stuck with them and their problems for a very long time. If Cingular ends with the AT&T name and service, I shall change companies and make sure all of our company cell phones are moved too.
Posted by: Carol at March 6, 2006 12:48 PM
I will also change my service if this deal goes thru.
Posted by: Brenda at July 24, 2006 11:49 AM