AT&T’s Move to Dallas Not that Big of a Deal

Implications: 1.      It is true that Dallas has more to offer in terms of lifestyle than San Antonio. 2.      It is also accurate that Verizon is beating up AT&T pretty well with fiber optic penetration in the Dallas region – and being closer to the action could not hurt. 3.      Yet, the announcement is not much more important than the run-of-the-mill reorganization news put out by corporations that are struggling.

Analysis:  Especially on the wireline side, AT&T is still having problems getting its act together.   Setting up a coherent organizational structure that will eliminate the state of inertia at the company is still a work in progress.  

The move does have a number of advantages.  There are more AT&T employees in the Dallas-Fort Worth area than in San Antonio.  It will play an important symbolic role with Ed Whitacre’s identification with Alamo City.  It represents a fresh start for the corporation with a CEO looking to move from the old ways of conducting business – and becoming a more dynamic player.  

However, the fact that AT&T will be in the Telecom Corridor is not really a strong argument.  Manufacturers will find their way to AT&T themselves – no matter where the corporation is located.  In addition, if influencing technology development was such an important reason, it could have gone to San Ramon – near Silicon Valley.   

While a move might shake things up a little bit, it is going to do little to solve the problems of bureaucratic lethargy at AT&T.