Monday, November 21, 2005

 

The telecom formerly known as SBC, and Southwestern Bell, and Ameritech and.....

I can't say I frequent the forums at PhoneScoop all that much but I can say that theres a good mix of people who are completely clueless, and like all forums a good amount of people who could spend the better part of their lives arguing over the chicken and egg issue.

The latest argument has been over the name change from SBC to AT&T, and how that will affect Cingular Wireless. An interview of the SBC CEO by USA Today leads some to believe that the Cingular brand is going to be replaced by the defunct AT&T Wireless brand.

I must say it all just seems rather contrived. Yes the AT&T name has better recognition... it should as it is as old as telephone history. But here are my problems with this.

1. If SBC really thought the ATTWS name was the all its cracked up to be, they would have bought it from ATT at the time of the merger. But they didn't.. they leased it for six months.

2. Cingular is in the middle completing the common service experience initiative. Making service and sales equal across both halves of the company, Legacy Blue and Legacy Orange. If Cingular was to rebrand as ATTWS but still be available in some markets as Cingular... how would that provide a common service experience?

3. With around 2000 company owned retail stores, and agents bringing the number up to the tens of thousands..(radioshack alone will add around 5000 more in 06) thats ALOT of rebranding. Most Agent locations shouldnt have a problem, but there are a good number of stores where branding is Cingular inside and out, right down to the shape of the furniture. So this all means alot of money. Unless SBC is going to pay for it, I wouldn't imagine the CWA would be happy with the fact that Cingular just laid off hundreds of employees only to spend millions on rebranding a couple of months later.

4. The name change will have little effect on existing customers. But how will potential customers react to the brand schizophrenia? Cingular is liable to become the Palm of wireless carriers. Frequent name changes give the aura of a lack of credibility. It carries the connotation that the company did something wrong, and is changing their name to make people forget... remember ValuJet -- AirTran? Is that something Cingular can afford? -- Verizon is still posting greater net customer gains since the merger. Brand name stability implies company stability, and Verizon has Cingular beat there.

Just for fun lets track all the name changes shall we?


Sources; Wikipedia (Cingular, AT&T), The Bell System Memorial, The Wayback Machine, The Red Herring, AT&T History

Update 11/21: Official Q&A information directly from Cingular concerning the USA Today article:


"Will Cingular be changing its name to AT&T Wireless?


No. Cingular has been, is, and will remain a national brand.

What has changed for Cingular?

AT&T's plans will not change the way we market or manage Cingular. Even today, when BellSouth and AT&T sell wireless services as part of a bundle of wired and wireless services, the customer receives a bill from BellSouth or AT&T - not from Cingular. Most importantly, if either BellSouth or AT&T purchases wireless services from Cingular and markets them under another name, the results still show up in our balance sheet and are beneficial to Cingular. Gross adds - by any name - show up on Cingular's bottom line."

More to come including a clarification from Stan Sigman.


Comments:
So Cingular has realized it can't go toe-to-toe with Verizon as a premium carrier, and now wants to take on T-Mobile as a low-price carrier?

Guess it makes sense. Verizon sure has been kicking their ass lately.
 
Cingular really should consider changing their name to AT&T. Even Cingular's CEO, Stan Sigman, admitted in a recent Business Week interview that Cingular's reputation is poor.

The AT&T name would be like a fresh start for them, plus it has broader name recognition than the Cingular name. Its a change that, even if it does not happen now, may occur later, and I think it'll help when it does.
 
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