Brand bungling

AT&T has been planning to launch an AT&T Wireless-branded service after its wireless offspring is acquired by Cingular Wireless, but now, according to an SEC filing, AT&T believes the customer service problems AT&T Wireless suffered late last year damaged the long-standing brand beyond repair.

The implication is that the mothership is threatening the end of the branding agreement between the two companies, though the filing doesn't state that specifically. A further implication is that any new wireless offering from AT&T might not be called "AT&T Wireless."

It seems like AT&T is giving AT&T Wireless an inexplicable kick in the butt on the way out the door. If the Cingular acquisition is approved in the coming months, it won't matter too much to the people at AT&T Wireless, because they'll be done with the supposedly tainted name. However, what if the deal doesn't get approved, or approval is delayed until next year? If that is the case, AT&T potentially could file a lawsuit against AT&T Wireless for violating the companies' brand agreement, further damaging a struggling company with which it still shares a brand association. This potential course of events could render the brand unusable by any company.

What exactly is up with AT&T? The company said recently that it will no longer market residential long-distance service, and also that it might write down about $43 billion in assets. These are moves that make some people in the industry think that AT&T could be a merger target in the near future. If that is the case, Ma Bell apparently has decided that it will not go quietly.

E-mail me at doshea@primediabusiness.com.