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05/18/2004

Trying to Hear That

ATT's announcement today of a 5 year plan to sell wireless services over Sprint's network is just plain strange. From a branding perspective, its just another level of complexity on an already tangled tale.

Assuming that the ATT Wireless (no relation) / Cingular deal goes through, the ATT brand will disappear from the cellular market and then re-appear in a different guise. Needless to say phones that users had used on the ATT Wireless network will not work with services re-sold over Sprint's network.

All in all the move is bold, and as far as ATT is concerned, can't really fail. In fact, failure is built right into the equation. The outsider's best guess is that this project is simply a loss-leader...ATT wants to create a wireless brand because they need to have one. Now that ATT Wireless is getting absorbed, they have that opportunity again.

Bet you a dollar that 18 months after they start re-selling Sprint PCS, they buy it outright.

May 18, 2004 in News | Permalink

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