AT&T
From Wikipedia, the free encyclopedia
- For other companies with similar names, see AT&T (disambiguation).
| AT&T Inc. | |
|---|---|
 |
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| Type | Public (NYSE: T) |
| Founded | 1983[1] |
| Headquarters | San Antonio, Texas, USA |
| Key people | Randall L. Stephenson, CEO Richard Lindner, CFO |
| Industry | Telecommunications |
| Products | Wireless, Telephone, Internet, Television |
| Revenue | ▲ $118.93 billion USD (2007)[2] |
| Operating income | ▲$20.40 billion USD (2007)[2] |
| Net income | ▲ $11.95 billion USD (2007)[2] |
| Employees | 309,050 |
| Website | www.att.com |
AT&T Inc. (NYSE: T) is the 2nd largest provider of both local and long distance telephone services, wireless service, and DSL Internet access in the United States with 71.4 million customers. In 2005, "Baby Bell" SBC Communications Inc. purchased former "Ma Bell" AT&T Corporation and then changed the name of the company after the merger to the more iconic AT&T moniker and the T stock-trading symbol (for "telephone").
The current AT&T includes eleven of the original Bell Operating Companies, and the original long distance division.[3] While it reconstitutes much of the former Bell System, AT&T Inc. lacks the vertical integration of the historic AT&T Corp. which prompted the antitrust suit and breakup in 1984.[citation needed]
The company was honored at the 2008 Technology & Engineering Emmy Awards for development of coaxial cable technology.
Contents |
[edit] History
[edit] Founding, expansion
AT&T Inc. was founded in 1983 as Southwestern Bell Corporation, headquartered in St. Louis, Missouri. It was one of the seven original Regional Bell Operating Companies, or "Baby Bells" created by AT&T Corporation prior to its 1984 divesiture. The company — a holding company for Southwestern Bell Telephone Company — was created as a result of U.S. antitrust action against American Telephone & Telegraph Company in 1983. It took full control of Southwestern Bell Telephone on January 1, 1984.[4]
In 1993, Southwestern Bell Corp. moved its headquarters to San Antonio, Texas, and, during its annual meeting of stockholders in 1995, the company announced that its name would be changed to SBC Communications, Inc. The name change was an effort to reinforce the company's national and global reach and the company stated not only that "SBC" was not an acronym for Southwestern Bell Corporation but also that it did not stand for anything at all.
SBC then proceeded (as permitted by the Telecommunications Act of 1996) to acquire fellow Baby Bell Pacific Telesis, the Regional Bell operating company serving Nevada and California, in 1997 and the former independent Bell System franchise SNET (Southern New England Telephone).
SBC then announced plans to acquire Ameritech, the Regional Bell operating company serving Illinois, Indiana, Michigan, Ohio, and Wisconsin, and told the FCC that it would allow competitors access to local markets where it had had a monopoly if the FCC would allow them to acquire Ameritech. The FCC agreed and in May 1998, SBC and Ameritech announced the merger would move forward. After making several organizational changes (such as the sale of Ameritech Wireless to GTE) to satisfy state and Federal regulators, the two merged on October 8, 1999. The FCC later fined SBC Communications $6 million for failure to comply with agreements made in order to secure approval of the merger.
On November 1, 1999, SBC became a part of the Dow Jones Industrial Average.
In 2002, SBC ended marketing its operating companies under different names, and simply opted to give its companies different doing business as names based on the state (a practice already in use by Ameritech since 1993), and it gave the holding companies it had purchased d/b/a names based on their general region.
[edit] AT&T Corporation acquisition
On January 31, 2005, SBC announced that it would purchase AT&T Corp. for more than $16 billion. The announcement came almost 8 years after SBC and AT&T called off their first merger talks and nearly a year after initial merger talks between AT&T and BellSouth fell apart. AT&T stockholders, meeting in Denver, approved the merger on June 30, 2005. The U.S. Department of Justice cleared the merger on October 27, 2005, and the Federal Communications Commission approved it on October 31, 2005. The merger was finalized on November 18, 2005.[5] SBC changed its corporate name to AT&T Inc., and updated the former AT&T's graphic logo, however the existing AT&T Sound trademark (voiced by Pat Fleet) continues to be used.
On December 1, 2005 the combined company began trading under the historic "T" stock ticker symbol on the NYSE. To differentiate from the preceding company, AT&T is formally known as "AT&T Inc.", while the preceding company was "AT&T Corp."
[edit] BellSouth acquisition
On Friday December 29, 2006, the Federal Communications Commission (FCC) approved the acquisition of BellSouth valued at approximately $86 billion (or 1.325 shares of AT&T for each share of BellSouth at the close of trading December 29, 2006).[6] The new combined company retained the name AT&T.[7] The deal consolidated ownership of both Cingular Wireless and Yellowpages.com, once joint ventures between BellSouth and AT&T. All services, including wireless, are currently offered under the AT&T name.[8]
[edit] Transition to new media
New Chairman and CEO, Randall Stephenson, discussed how wireless services are the core of "The New AT&T".[9] With declining sales of traditional home phone lines, AT&T plans to roll out various new media such as VideoShare, U-verse, and to extend its reach in High Speed Internet into rural areas across the country. He also has stated that AT&T will not make any more acquisitions for the time being. AT&T announced on June 29, 2007, however, that it was acquiring Dobson Communications. It was then reported on October 2, 2007 that AT&T would purchase Interwise for $121 million, which it completed on November 2, 2007. On October 9, 2007, AT&T purchased 12MHZ of spectrum in the prime 700 MHz spectrum band from privately-held Aloha Partners for nearly to $2.5 billion.
[edit] Bell Operating Companies
Of the twenty-two Bell Operating Companies which AT&T owned prior to the 1984 agreement to divest, eleven (BellSouth Telecommunications combines two former BOCs) have become a part of the new AT&T Inc. with the completion of their acquisition of BellSouth Corporation on December 29, 2006:[10]
- BellSouth Telecommunications (formerly known as Southern Bell and South Central Bell)
- Illinois Bell
- Indiana Bell
- Michigan Bell
- Nevada Bell (formerly known as Bell Telephone Company of Nevada)
- Ohio Bell
- Pacific Bell (formerly Pacific Telephone & Telegraph)
- Southwestern Bell
- Wisconsin Bell (formerly Wisconsin Telephone)
AT&T owns the following operating companies not considered a Bell Operating Company:
- Southern New England Telephone — Now wholly owned, the original AT&T held 16.8% interest prior to 1984.
[edit] Former operating companies
The following companies have gone to defunct status under SBC/AT&T ownership:
- Southwestern Bell Texas - a separate operating company created by SBC and merged back into SWBT on December 30, 2001.
- Woodbury Telephone - merged into Southern New England Telephone on June 1, 2007.
[edit] "Doing business as" names
On January 15, 2006, AT&T began using new "doing business as" names for its Bell Operating Companies and their holding companies. The following d/b/a list shows the d/b/a names of each company, with its true legal name in parentheses, listed in order of acquisition. Holding companies are listed in bold; the only exception is Southwestern Bell Telephone, L.P., which is not a holding company, as it has always been directly held by AT&T Inc. since its inception as Southwestern Bell Corporation.
AT&T Corporation and its holdings have been omitted, as its companies continue to do business under their legal name.
- AT&T Inc.
- AT&T Southwest (Southwestern Bell Telephone, L.P. as a whole)
- AT&T Arkansas (Southwestern Bell Telephone, L.P.)
- AT&T Kansas (Southwestern Bell Telephone, L.P.)
- AT&T Missouri (Southwestern Bell Telephone, L.P.)
- AT&T Oklahoma (Southwestern Bell Telephone, L.P.)
- AT&T Texas (Southwestern Bell Telephone, L.P.)
- AT&T West (Pacific Telesis Group)
- AT&T California (Pacific Bell Telephone Company)
- AT&T Nevada (Nevada Bell Telephone Company)
- AT&T East (Southern New England Telecommunications Corporation)
- AT&T Connecticut (The Southern New England Telephone Company)
- AT&T Midwest (AT&T Teleholdings, Inc.)
- AT&T Illinois (Illinois Bell Telephone Company)
- AT&T Indiana (Indiana Bell Telephone Company)
- AT&T Michigan (Michigan Bell Telephone Company)
- AT&T Ohio (The Ohio Bell Telephone Company)
- AT&T Wisconsin (Wisconsin Bell, Inc.)
- AT&T South (BellSouth Corporation)
- AT&T Southeast (BellSouth Telecommunications, Inc. as a whole)
- AT&T Alabama (BellSouth Telecommunications, Inc.)
- AT&T Florida (BellSouth Telecommunications, Inc.)
- AT&T Georgia (BellSouth Telecommunications, Inc.)
- AT&T Kentucky (BellSouth Telecommunications, Inc.)
- AT&T Louisiana (BellSouth Telecommunications, Inc.)
- AT&T Mississippi (BellSouth Telecommunications, Inc.)
- AT&T North Carolina (BellSouth Telecommunications, Inc.)
- AT&T South Carolina (BellSouth Telecommunications, Inc.)
- AT&T Tennessee (BellSouth Telecommunications, Inc.)
[edit] Corporate governance
AT&T's current board mainly consists of members of SBC's board of directors.
- Randall L. Stephenson — Chairman and Chief Executive Officer
- James A. Henderson
- Gilbert F. Amelio
- William F. Aldinger III
- August A. Busch III
- Martin K. Eby, Jr.
- Charles F. Knight
- Jon C. Madonna
- Lynn M. Martin
- Ronald M. Crump
- John B. McCoy
- Mary S. Metz
- Toni Rembe
- S. Donley Ritchey
- Joyce M. Roche
- Laura D'Andrea Tyson
- Patricia P. Upton
[edit] Contributions to political campaigns
According to the Center for Responsive Politics, AT&T is the United States' second largest donor to political campaigns, having contributed more than US$ 36 million since 1990, 56% and 44% of which went to Republican and Democratic recipients, respectively. A key political issue for AT&T is the question of which businesses win the right to profit by providing broadband internet access in the United States.[11]
In 2005, AT&T was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.[12] [13] [14]
[edit] Censorship controversy
In August 2007, the band Pearl Jam performed in Chicago at Lollapalooza which was being web-broadcast by AT&T. The band, while playing the song "Daughter", started playing a version of Pink Floyd's "Another Brick in the Wall" but with altered lyrics critical of president George Bush. These lyrics included "George Bush, leave this world alone!" and, "George Bush, find yourself another home!". Listeners to AT&T's web broadcast heard only the first line because the rest was censored[15] although, AT&T spokesman Michael Coe said that the silencing was "a mistake."[16]
In September 2007, AT&T changed[17] their legal policy to state that "AT&T may immediately terminate or suspend all or a portion of your Service, any Member ID, electronic mail address, IP address, Universal Resource Locator or domain name used by you, without notice for conduct that AT&T believes"..."(c) tends to damage the name or reputation of AT&T, or its parents, affiliates and subsidiaries."[18] By October 10, 2007 AT&T had altered the terms and conditions for its Internet service to explicitly support freedom of expression by its subscribers, after an outcry claiming the company had given itself the right to censor its subscribers' transmissions.[19]
Section 5.1 of AT&T's new terms of service now reads "AT&T respects freedom of expression and believes it is a foundation of our free society to express differing points of view. AT&T will not terminate, disconnect or suspend service because of the views you or we express on public policy matters, political issues or political campaigns."[20]
[edit] Privacy controversy
- Further information: NSA call database, Mark Klein, NSA warrantless surveillance controversy, Hepting v. AT&T
In 2006, the Electronic Frontier Foundation lodged a class action lawsuit, Hepting v. AT&T, which alleged that AT&T had allowed agents of the National Security Agency (NSA) to monitor phone and Internet communications of AT&T customers without warrants. If true, this would violate the Foreign Intelligence Surveillance Act of 1978 and the First and Fourth Amendments of the U.S. Constitution. AT&T has yet to confirm or deny that monitoring by the NSA is occurring. In April 2006, a retired former AT&T technician, Mark Klein, lodged an affidavit supporting this allegation.[21][22] The Department of Justice has stated they will intervene in this lawsuit by means of State Secrets Privilege.[23]
In May 2006, USA Today reported that all international and domestic calling records had been handed over to the National Security Agency by AT&T, Verizon, SBC, and BellSouth for the purpose of creating a massive calling database.[24] The portions of the new AT&T that had been part of SBC Communications before November 18, 2005 were not mentioned.
On June 21, 2006, the San Francisco Chronicle reported that AT&T had rewritten rules on their privacy policy. The policy, which took effect June 23, 2006, says that "AT&T — not customers — owns customers' confidential info and can use it 'to protect its legitimate business interests, safeguard others, or respond to legal process.' "[25]
On August 22, 2007, National Intelligence Director Mike McConnell confirmed that AT&T was one of the telecommunications companies that assisted with the government's warrantless wire-tapping program on calls between foreign and domestic sources.[26]
On November 8, 2007, Mark Klein, a former AT&T technician, told Keith Olbermann of MSNBC that all Internet traffic passing over AT&T lines was copied into a locked room at the company's San Francisco office — to which only employees with National Security Agency clearance had access.[27]
[edit] Payphone removal
On December 3, 2007, AT&T announced it would remove all of its 65,000 remaining payphones by the end of 2008.[28] BellSouth already had removed its payphones years before being acquired by AT&T, and Qwest sold its pay telephone services in 2004. Verizon Communications will be the only Baby Bell that will continue to operate pay telephones following the removal of AT&T pay telephones,[29] and currently has no interest in leaving the business.[30]
[edit] Intellectual property filtering
In January 2008, the company reported plans to begin filtering all Internet traffic which passes through its network for intellectual property violations.[31]
Commentators in the media have speculated that if this plan is implemented, it would lead to a mass exodus of subscribers leaving AT&T,[32] although this is misleading as internet traffic may go through the company's network anyway.[31]
[edit] Places/events/partners named after AT&T
- AT&T Bricktown Ballpark — Oklahoma City, Oklahoma (formerly Southwestern Bell Bricktown Ballpark, SBC Bricktown Ballpark)
- AT&T Center — San Antonio, Texas (formerly SBC Center)
- AT&T Champions Classic — Valencia, California
- AT&T Classic — Atlanta, Georgia (formerly BellSouth Classic)
- AT&T Cotton Bowl Classic (formerly Mobil Cotton Bowl Classic, Southwestern Bell Cotton Bowl Classic, SBC Cotton Bowl Classic) — played in Dallas, Texas, at the Cotton Bowl stadium.
- AT&T Field — Chattanooga, Tennessee (formerly BellSouth Park)
- AT&T National
- AT&T Plaza — Dallas, Texas (the new plaza in front of the American Airlines Center at Victory Plaza)
- AT&T Park — San Francisco, California (formerly Pacific Bell Park, SBC Park)
- AT&T Pebble Beach National Pro-Am
- AT&T Red River Rivalry — Dallas, Texas (formerly Red River Shootout, SBC Red River Rivalry)
- Jones AT&T Stadium — Lubbock, Texas (formerly Clifford B. and Audrey Jones Stadium, Jones SBC Stadium)
- Sponsorship of the #31 car driven by Jeff Burton — Richard Childress Racing — Sprint Cup
- Associate sponsorship of the #29 car driven by Jeff Burton and Scott Wimmer - Richard Childress Racing - Nationwide Series
- AT&T 250 — NASCAR Nationwide Series race — Milwaukee Mile
- AT&T WilliamsF1 Team — based in Grove, Oxfordshire, United Kingdom
[edit] See also
- AT&T Mobility
- AT&T Connect
- Bell System
- Bell System Divestiture
- Regional Bell Operating Company
- Telecommunication
- Lists of public utilities
[edit] References
- ^ The current company named AT&T was incorporated on October 5, 1983 as Southwestern Bell Corporation, later SBC Communications. Its buyout of AT&T Corporation resulted in its name changing from SBC Communications, Inc. to AT&T Inc. (see: AT&T (2006-04-28). "SEC 8-K". Press release. Retrieved on 2007-09-29.)
- ^ a b c AT&T (2008-01-24). "Investor Briefing (4th Quarter 2007)". Press release. Retrieved on 2008-02-06.
- ^ Kleinfield, Sonny (1981). The biggest company on earth: a profile of AT&T. New York: Holt, Rinehart, and Winston. ISBN 0-03-045326-7.
- ^ AT&T Divestiture. Bell System Memorial. Accessed May 18, 2008
- ^ AT&T (2005-11-18). "New AT&T Launches". Press release. Retrieved on 2007-09-29.
- ^ Vorman, Julie (2006-12-29). AT&T closes $86 billion BellSouth deal. Reuters. Retrieved on 2007-09-29.]
- ^ Bartash, Jeffry; Jonathan Burton (2006-03-05). AT&T to pay $67 billion for BellSouth. Dow Jones Market Watch. Retrieved on 2007-09-29.
- ^ AT&T (2006-12-29). "AT&T and BellSouth Join to Create a Premier Global Communications Company". Press release. Retrieved on 2007-09-29.
- ^ AT&T's new chief dialed in. Chicago Tribune (24 June 2007). Retrieved on 2007-06-27.
- ^ Agreements Between SNET America, Inc. (SAI) DBA AT&T Long Distance East, and AT&T Telephone Companies. AT&T. Retrieved on 2007-09-29.
- ^ AT&T Inc. The Center For Responsive Politics. Retrieved on 2007-09-29.
- ^ Drinkard, Jim. "Donors get good seats, great access this week", USA Today, 2005-01-17. Retrieved on 2008-05-25.
- ^ "Financing the inauguration", USA Today. Retrieved on 2008-05-25.
- ^ "Some question inaugural's multi-million price tag", USA Today, 2005-01-14. Retrieved on 2008-05-25.
- ^ Grossberg, Josh (2007-08-09). AT&T's Pearl Jamming?. E Online. Retrieved on 2007-09-29.
- ^ Roberts, Michelle (2007-08-10). AT&T: Pearl Jam edit a mistake. Associated Press. Retrieved on 2007-09-29.
- ^ AT&T threatens to disconnect subscribers who criticize the company
- ^ AT&T Legal Policy. AT&T. Retrieved on 2007-09-29.
- ^ AT&T Changes Terms Of Service After Outcry
- ^ AT&T Legal Policy
- ^ Nakashima, Ellen, "A Story of Surveillance", Washington Post, November 7, 2007
- ^ Singel, Ryan (2006-04-07). Whistle-Blower Outs NSA Spy Room. Wired. Retrieved on 2007-09-29.
- ^ Electronic Frontier Foundation (EFF) (2006-04-28). "Government Moves to Intervene in AT&T Surveillance Case". Press release. Retrieved on 2007-09-29.
- ^ Cauley, Leslie (2006-05-11). NSA has massive database of Americans' phone calls. USA Today. Retrieved on 2007-09-29.
- ^ Lazarus, David (2006-06-21). AT&T rewrites rules: Your data isn't yours. San Francisco Chronicle. Retrieved on 2007-09-29.
- ^ Shrader, Katherine (2007-08-22). Spy chief reveals classified surveillance details. Associated Press. Retrieved on 2007-09-29.
- ^ Olbermann, Keith (2007-11-8). Whistleblower saw AT&T assist Bush administration. MSNBC. Retrieved on 2007-11-10.
- ^ AT&T - News Room (December 3, 2007). AT&T Announces Intention to Withdraw from Pay Phone Business by End of 2008. Press release. Retrieved on December 16, 2007.
- ^ Smith, Andrew D. (December 4, 2007). AT&T to say goodbye to its 65,000 payphones. Dallas Morning News. Retrieved on December 16, 2007.
- ^ Hancock, Jay (December 6, 2007). Verizon: We're not dumping pay phones. The Baltimore Sun. Retrieved on December 16, 2007.
- ^ a b Wu, Tim (2008-01-16). Has AT&T Lost Its Mind? A baffling proposal to filter the Internet. Slate.
- ^ AT&T's proposed filtering policy is bad news - Netiquette - MSNBC.com
[edit] External links
[edit] Corporate information
- AT&T corporate website
- AT&T History and science resources at The Franklin Institute's Case Files online exhibit
- Brand evolution of AT&T companies
- Press Release announcing FCC Approval of SBC-Ameritech merger (1999-10-06)
- Bell System Memorial
- ATT's most recent conference call transcripts
[edit] Articles
- Unnatural Monopoly: Critical Moments in the Development of the Bell System Monopoly by Adam D. Thierer
- "AT&T buys IBM's Global Network", BBC News, December 8, 1998
- "SBC closes AT&T acquisition", CNet News, November 18, 2005
- "AT&T to buy BellSouth for $67 billion", CNet News, March 5, 2006
- AT&T Whistleblower to Urge Senate to Reject Blanket Immunity for Telecoms Electronic Frontier Foundation
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