US telco AT&T has made key changes to its executive team as it transitions to a new structure and strategy in the wake of its merger with satellite broadcaster DirecTV. The moves are aimed at helping the company to deliver truly integrated entertainment, mobile and broadband services.
US telco AT&T (NYSE:T) has made key changes to its executive team as it transitions to a new structure and strategy in the wake of its merger with satellite broadcaster DirecTV.
Long-time mobile chief Ralph de la Vega (pictured) has been appointed vice chairman of the company and CEO of the business solutions and international business, a spokesman for the Dallas-based telco confirmed. He will continue to lead the integrated business solutions group and take on responsibility for the Mexican wireless business and DirecTV Latin America.
Chief strategy officer John Stankey has been named CEO of the entertainment group, which consists of the domestic DirecTV and U-verse operations. He will also lead the consumer mobility team. Glenn Lurie, who remains president and CEO of AT&T Mobility, will report to Stankey.
Meanwhile, CTO John Donovan has taken on the role of CSO and group president for technology and operations, responsible for guiding the company’s transition to “a software defined network”, the spokesman said.
The changes are driven by AT&T’s aim of becoming “the premier integrated company in the world,” he said.
“To help us better execute on that strategy for consumers and deliver an integrated entertainment, mobile and broadband experience that is truly unique, we’re moving to a single consumer organisation.”
He added that the company aims to tap an unmet need for a service that seamlessly enables consumers to access content on any device, anywhere and at any time. The bundled offers launched since the DirecTV acquisition have only “scratched the surface of what’s possible”, he added.
Following recent meetings with the AT&T IR team, Wells Fargo analyst Jennifer Fritzsche said she has “a greater conviction in the post DirecTV strategy and path”.
“While it knows linear TV trends continue to face pressure, more video is being consumed in absolute volume as a result of OTT broadband watching and wireless video consumption,” she said.
She noted that the company plans to attract new customers with the bundled TV Everywhere/ wireless product which, as of January, had 500,000 subscribers, and create new products for new customer segments. AT&T has not ruled out a wireless-only video product and is also working on mobile advertising, she added.
In late January, it was reported that AT&T is preparing for a major media purchase, with Time Warner touted as the likely target.
The telco recently sold US$6bn of senior unsecured notes to refinance upcoming debt obligations and for general corporate purposes. Its total outstanding debt amounted to US$126.2bn as of 31 December 2015.
