Wednesday, October 1, 2008

AT&T Creates New Consumer Unit, Featuring "Everything"

AT&T is reorganizing its management, creating separate business units focused on customer segments rather than product lines, further illustrating the seriousness with which AT&T now views creating new kinds of services that transcend networks and devices. Part of the reason for creating a "consumer" services unit is that video, for example, now must be licensed, packaged and delivered across devices (TVs, PCs, mobile devices) and networks (wireless and wired). 

The reorganization should make easier the creation of new products that transcend network and device limitations, something AT&T is deadly serious about.

Wireless division CEO Ralph de la Vega now is in charge of all consumer offerings, including wireless, video in all its forms, broadband access and voice. Business services, infrastructure and diversified business are the other three major units.

The reason all of this ultimately will matter for virtually all contestants in the consumer space is that a company the size of AT&T, if successful, can reshape the consumer market and its expectations about what a "service" should be, how it should be packaged, what features such offers "should" feature, how much these features should cost and what payment methods and plans are part of the "new normal."

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