AT&T just doesn't seem the same without Ed Whitacre at the helm.
Ed Whitacre was the CEO of Southwestern Bell Corporation/ SBC Communicatoins/ "the new AT&T" from 1995 to June 2007. He orchestrated a string of acquisitions that turned the smallest baby bell into the largest telecommunications company in the world. By the end of his tenure, AT&T was the largest US provider of local and long distance telephone service, the largest US provider of broadband internet access, the largest US wireless provider based on subscribers, the largest US directory publisher, and one of the largest providers of IP based telecom services for businesses. In addition, AT&T has one of the world's most powerful internet backbone networks, a leading internet directory service, and an emerging businesses in television. AT&T was most recently named the Company of the Year by Forbes magazine.
Over the past few years, Ed Whitacre kept things interesting for shareholders. From the bidding war for AT&T wireless, to the acquisition of the remnants of the old AT&T and subsequent rebranding and renaming of the company, to the eventual Bellsouth merger that squeaked through antitrust authorities.
He kept things controversial and unusual. From his push to bring TV service to telecom customers, to statements about requiring internet companies pay for broadband pipe access which sparked a debate about network neutrality, to his $158.5 million dollar retirement package.
He was interesting, intriguing, and uncharacteristic of a telecom executive. He supposedly did not have a computer in his office or use email. He enjoyed ranch life and one of his favorite activities was using his tractor to move things and dig holes.
His replacement Randall Stephenson is in the unfortunate position of following an icon. Since he took over in June, AT&T's stock price has been basically flat, even through the much anticipated iPhone launch. He hasn't made any splashy statements or deals and probably won't any time soon. He has stated that AT&T will not make any more acquisitions for "the time being." He is supposedly tech savvy and loquacious.
Yawn.
I miss Ed Whitacre.
Disclosure: I am long AT&T
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1 comments:
Ed was a robber baron of a bygone era but had good karma in the end. His real "knack" was understanding that regulation was a much better world than real competition. Realizing this, he created armies of internal lobbyists and lawyers and essentially bought key votes to stifle any real local competition and approving a bunch of mergers. The new guy needs to figure out how he can grow top line revenue outside of wireless and get new management running the woefully tardy IPTV initiative or pay the stock price.
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