AT&T merges wireless and business units led by de la Vega
AT&T Inc is merging its wireless and business divisions into a single unit led by Ralph de la Vega, former chief executive of the company’s wireless segment, a spokesman for AT&T said on Tuesday.
The announcement comes as cable companies try to lure business customers away from traditional telecommunications carriers.
Business-related customers represent more than 50 percent of the company’s mobile revenues.
“They are simply making the case that the cornerstone of the enterprise sale is now wireless rather than wireline. It makes a ton of sense with the cable industry focusing more and more on the commercial segment,” said Craig Moffett, an analyst at MoffettNathanson.
Comcast has been steadily building out its Wi-Fi network and plans to have 8 million hot spots by the end of the year, covering 19 of the 30 largest U.S. cities.
If the merger is approved, the combined company would have a national footprint that could potentially challenge the dominance of U.S. telecom companies Verizon Communications Inc and AT&T in offering cellular data and even voice services.
“The missing piece for cable is wireless and AT&T seems to be positioning itself to emphasize not only their strength, but cable’s weakness,” said Moffett.
Source: Reuters
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