Atlanta, GA, July 22, 2011 — Comment from Jeff Kagan, Tech Analyst at www.jeffkagan.com
Comment Comparing AT&T and Verizon Quarterly Numbers and CEO Change at Verizon
Difference Between AT&T and Verizon Numbers
Traditionally AT&T and Verizon have had similar ups and downs, but there seems to be a gap opening up between them. AT&T seems to be in the early stages of struggling while Verizon continues to do strong business. Why?
Yesterday AT&T blamed the slowness on the marketplace. If Verizon would have also had a slow report that would make sense, but Verizon is still growing strong.
So what is the difference between the companies as this gap opens up?
Over the last few years I have been talking about how AT&T has changed so dramatically after the acquisitions and after the move to Dallas. It is no longer the same company it was before.
It was SBC out of San Antonio until about 7 years ago when they acquired AT&T, Bellsouth and Cingular. They then took the AT&T name. The CEO Ed Whitacre retired and Randall Stephenson took his place.
The company was suddenly very large and very different. This new AT&T looks nothing like the old SBC, Bellsouth, AT&T or Cingular.
The new AT&T no longer focuses first on the customer and worker. Instead if focuses first on the investor. This is part of the problem. When AT&T focused on the customer and worker, everything was strong and the investor was happy. Now when AT&T focuses on the investor first, the worker and customer are no longer taken care of and notice the difference.
AT&T has grown strong over the last several years so they have plenty of wiggle room to correct the problem if they understand they indeed have a problem. We’ll have to keep our eyes on them and see.
Verizon seems to be running like a well run machine. They seem to be focused strongly on the worker and the customer and that keeps the investor happy. It will be interesting to see this develop over the next several quarters and see if AT&T corrects before they veer off the speedway.
Comment on CEO Change at Verizon
Verizon announced as of Aug 1 Ivan Seidenberg will be stepping down as CEO, but remaining Chairman. It also announced Lowell McAdam will be the new CEO. Sometimes a transition is smooth and positive, while other times it is rough and negative. We have all seen plenty of both. Which will this be?
So far it looks like a smooth transition. Of course we will have to see what happens when McAdam does take over, but with Seidenberg staying on as Chairman I think the business will likely continue its current successful pattern.
Ivan Seidenberg ushered Verizon through the last decade or two and the company has performed very well. Congratulations Ivan. Now its time to work on your golf stroke.
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Jeff KAGAN| TECH ANALYST | www.jeffKAGAN.com
Wireless, Telecom, HealthTech, CableTV & IPTV, Technology
Phone 770-579-5810 Email jeff@jeffKAGAN.com
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