For SBC Chief, AT&T Deal Is Essential in New Telecom Era is a Q&A in today’s Los Angeles Times.
I think the swipe at Vonage and other so called instant phone companies who can buy network access below cost and then resell and the comment about customers in Hong Kong really points to how important AT&T’s CallVantage and VoIP overall was to this deal.
Clearly SBC is also gearing up for a name change. AT&T is clearly the logical choice because it has to have the higher recall in brand identity vs. SBC. I say it’s time to invest in automobile and truck paint. Here’s why.
My guess is the senior marketing folks (remember, Dorman is a marketer first) will evaluate at shareholder expense the options:
1. Stay SBC–this would be the second weakest way to go as the cost to build brand nationwide, but more importantly on a global basis (and we are in the era of the global telco brand) would be even more expensive. Don’t forget AT&T just did a deal to sponsor some aspects of Formula One Grand Prix racing while they could easily transfer it to SBC, the ability to tell the story gets harder and more expensive.
2. Come up with a totally new name…NOT. This would be even more expensive and erode the equity in both brands. I mean, if they did come up with a new name, I think it would be ABC for American Bell Corporation, (oh, yes, some mouse house has that name in their portfolio–and I don’t think they would be very sporting about giving it up) but while that makes some things cute, I don’t think the expense of rebranding is worth the years it will take to build market acceptance.
3. Go with AT&T. It will cost less. It will score higher on the recall tests and it is at the front of all directory listings. What’s more globally it still is the most known USA phone company. The one thing I know is all the truck painting companies must be salivating right now. It’s only been a few years here in California when the trucks went from Pacific Bell to SBC in look.
Bottom line. I just saved shareholder millions of dollars, as that’s what would be spent on studies, research, analysis, focus groups and more, all before the first dime is dropped on new advertising and promotion.