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Wednesday, March 22, 2006

Better name: SBC or AT&T?

You probably know that SBC Communications acquired AT&T in November. One of the new company's first important decisions was what to call the new entity: SBC or AT&T? Interestingly, they chose the name of the acquired company. Good idea? Why or why not?

I heard one reporter suggest that, “...no one has heard of SBC.” Another person felt that regional player SBC (13 states) did not have as strong a brand as giant AT&T.

Maybe. But even though the AT&T brand is big, it’s not bold. Nor beautiful. At least not anymore. I believe that the AT&T brand has eroded over the past decade to the point where there’s not much left of it.

On the other hand, the SBC brand is clear -- at least where it does business (or did business), including my state of Ohio. And it’s a brand that’s alive and growing. SBC is going beyond the call to deliver broadband, wireless and other technologies. I get it.

Big, old, tired brand? Or young, vibrant, relevant one? The second one rings my bell. How about you?

2 Comments:

Blogger The Full Cleveland said...

The name AT&T might have more awareness associated with it, but it also has more negative baggage.

SBC lost more than its name in this deal. It lost the stakeholder impression of being a growing, out-the-box company.

It can recover; however, there's now an invisible barrier involved in any transaction, which adds to cost of goods sold and, worse yet, cannot be easily traced to determine how to counteract it.

7:01 AM

 
Anonymous Anonymous said...

I agree with the full cleveland. SBC traded one set of acronyms for another. American Telephone and Telegraph lost its luster years ago. Yes, it is monolithic and well known, but for what? Certainly not for being nimble or innovative. Personally, the name change is not what concerns me. Rather, it's what the sluggish AT&T culture will do to SBC's service, products, and ultiimately, the consumer's brand experience. I for one am not optimistic.

3:55 PM

 

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