Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    A Cingular-Minded Merger

    Written by

    Wayne Rash
    Published January 15, 2007
    Share
    Facebook
    Twitter
    Linkedin

      Within minutes of the Federal Communications Commission giving final approval to the merger of AT&T and BellSouth Dec. 29, the companies involved created a 22-state communications company that takes a big step in reassembling the Ma Bell of decades past, a huge telecom monopoly broken up by federal edict years ago.

      However, the world today is vastly different from the one inhabited by the AT&T of yore. Todays biggest prize is Americas largest wireless carrier, Cingular Wireless, until now a joint property of AT&T and BellSouth. Now its completely owned by AT&T and will soon be identified as such.

      The merger includes millions of wire-line customers, a vast switching infrastructure, long-distance services and a wide variety of business services. However, wireless service still is the biggest part of the big picture.

      “The principal reason for the merger was to have complete control over Cingular,” said Dave Passmore, an analyst with Burton Group. “More and more communications were going wireless, and the ability to sell service bundles to the enterprise, including a wireless component, was critically important to AT&T.”

      Passmore said a key strategy will be selling bundled services to business customers that couldnt be offered in the past.

      “What I think it means is that enterprises will now see greater bundling from AT&T with wireless and wire line,” he said.

      However, theres more to a telecom company than even wireless and wire-line services.

      “What were now able to offer with this combined Cingular and AT&T includes wire line, long distance, Internet, broadband, data networking, and now a complete portfolio of wireless voice and data services,” said John Regan, vice president of business marketing at AT&T. “Were now able to leverage the assets from AT&T, such as the global IP network and security and hosting services, and bring in more integrated play as it relates to wireless and wire-line services.”

      Regan, in Dallas, said that while its too early to know exactly what new business offerings AT&T will have, they will include integrated management portfolios for products such as managed security, remote backup and storage, and wired-wireless integration.

      “Its business as usual at Cingular,” said Cingular spokesperson Mark Siegel in Atlanta. “We still are the nations largest wireless company, but now we have a single owner. Because of what AT&T is doing, well be able to offer converged services, which will be an enormous advantage to our customers.” Eventually, change will come. “Bundled packages will happen over time,” Siegel said. “Youll see the distinction between wireless and wire line disappear over time.”

      “Clearly, consolidation is going on in the marketplace,” said Jack Gold, principal analyst for J. Gold Associates.

      While the merger does mean that AT&T will be able to provide a wider suite of services, Gold said hes unsure the change will help enterprise users.

      “These guys are so focused in providing all of these services to consumers that its highly likely that the enterprise customer is not going to truly benefit from these guys coming together,” Gold said.

      In addition, Gold said that the merger reduces competition in some areas, particularly in telecom. “In telecom, its going to be a two-horse race now for the most part,” Gold said. He said he expects prices to go up and the level of service to go down.

      But the news isnt all negative. “For smaller players, I think they will actually have more options,” Gold said. “Most of those folks arent interested in getting dedicated T-1 lines.”

      AT&Ts Regan said increasing the offerings to small businesses is an important part of AT&Ts strategy. “Small business is fueling this economy, and we want to help that business,” Regan said.

      Wayne Rash
      Wayne Rash
      https://www.eweek.com/author/wayne-rash/
      Wayne Rash is a content writer and editor with a 35-year history covering technology. He’s a frequent speaker on business, technology issues and enterprise computing. He is the author of five books, including his most recent, "Politics on the Nets." Rash is a former Executive Editor of eWEEK and a former analyst in the eWEEK Test Center. He was also an analyst in the InfoWorld Test Center and editor of InternetWeek. He's a retired naval officer, a former principal at American Management Systems and a long-time columnist for Byte Magazine.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×