Bub-bye SBC: AT&T brand to prevail

As expected, SBC Communications today announced that it will adopt the AT&T brand once it completes the merger with its former parent company. The company also said it will launch a new logo for the company, and a new stock ticker, once the merger reaches its expected conclusion in late 2005, and will launch a major multimedia advertising campaign to promote its new status as well.

“The AT&T name has a proud and storied heritage, as well as unparalleled recognition around the globe among both businesses and consumers,” said Edward E. Whitacre Jr., chairman and CEO of SBC Communications Inc., in a prepared statement today. “No name is better-suited than AT&T to represent the new company's passion to deliver innovation, reliability, quality, integrity and unsurpassed customer care. This is the brand that will lead the industry in delivering the next generation of communications and entertainment services.”

The choice of brand had been widely rumored for the last few weeks, and has particular impact outside the U.S., where the AT&T brand is much better known than that of SBC.

David Dorman, outgoing chairman of AT&T, said in a prepared statement that he is “very pleased to know that the combined AT&T Corporation and SBC Communications Inc. will adopt the AT&T name upon the formal close of the merger. This decision is a powerful endorsement of the enduring strength of the AT&T brand, which is far and away the most recognized communications brand in the U.S. and around the globe. The decision is also a tribute to our employees, who for 120 years have worked so hard to build a proud heritage of innovation, quality service, integrity and reliability.”

According to SBC, the AT&T brand was chosen as the best platform because of its core strength in the enterprise market, and its “universal awareness as a communications brand” according to internal research which showed AT&T has 98% awareness among consumers and nearly 100% awareness among businesses, as well as high global awareness.

“Which name to choose has been one of the biggest and hardest decisions to make,” said industry analyst Jeffrey Kagan. “Both names have value. SBC within their territory, and AT&T throughout the rest of the country and world. But of all the names in telecom, only one has the history of AT&T.”

The two companies have continued to operate as separate entities, and face a long period of integration of their networks, products, back office facilities and employee rolls. Competitors in the U.S. and around the globe are hoping to capitalize on this transition period and lure large business customers away from the new AT&T as it copes with internal merger issues.

Also looming in the near future is the elimination of 13,000 jobs, promised at the time the merger was announced.