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AT&T CEO Stepping Down
Ed Whitacre's mission accomplished
by Karl Bode Friday 27-Apr-2007 tags: business · telco
On the heels of the company's great first quarter financial performance, AT&T CEO Ed Whitacre says he will officially step down on June 3. AT&T Chief Operating Officer Randall Stephenson will be taking over. Whitacre became CEO of SBC in 1990. He spent 17 years rejoining companies that were created by the regulatory breakup of ma bell back in 1984. His tenure led AT&T to incredible profitability as he became a larger-than-life personality in the telecom sector.

He also almost single-handedly began the network neutrality debate back in 2005 with his comments to Business Week about Google getting a "free ride" on "his pipes."

Last fall, industry analyst Dave Burstein hinted that an unsettled CEO spot and worries over stock prices are what kept AT&T from a bolder FTTH initiative (instead of their current VDSL IPTV solution). "Randall [Stephenson] doesn’t have the CEO spot quite yet, and [Ed] Whitacre’s pension isn’t fixed, so they probably will keep spending down to boost the stock price."

It will be interesting to see if the transition has any impact on next-generation broadband deployment. Does a settled CEO spot mean a shift to a more aggressive FTTH plan a la Verizon? AT&T continues to insist to us that nothing will change and that they're happy with "Project Lightspeed" as is, but the rumor of a shift from FTTN to FTTH never seems to die on Wall Street.

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WeSRT4

join:2000-11-20
Mobile, AL

FTTH

FTTH... pay me now or pay me later. If they don't deploy it now they will be 5 years from now. I for one think it makes more financial sense to do it right the first time.

ninjatutle
Premium

join:2006-01-02
San Ramon, CA

Re: FTTH

Umm sure. Fiber is already being pushed to the curb. When it gets cheaper or they find a need, all they have to do is push it to the homes, holmes.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: FTTH

I agree.. its really expensive to do the last mile, however prepping it by FTTN is not a bad idea, as long as they can make it work. Using the profits from FTTN, they can persue the last mile of fibre, bonded pairs, wireless, or any other tech.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN
How does it make more financial sense to deploy when demand is low and costs are high?

As time goes by, technology gets cheaper (Verizon has already noted that connection costs have dropped significantly since they started their FIOS project).

Currently there's no great demand for FTTH- quite a few are still satisfied with 1.5M (or even less) DSL.

As much as many of us would like to see widespread FTTH right freakin' now, it makes more financial sense is to wait until demand is up and deployment costs are down.

T1 Rocky

join:2002-11-15
Dallas, TX

No demand for fiber to the home?!?!?!@!W#$

said by dynodb:

Currently there's no great demand for FTTH- quite a few are still satisfied with 1.5M (or even less) DSL.

There's no demand for fiber to the home???? How do you figure that? I couldn't disagree with you more. Whitacre would like for you to believe that there is no demand for fiber and that dsl is sufficient. In fact he has stated that a few times in interviews. And he wants you to believe that because he already has a paid for copper network in place and he has already recieved payment to build out the fiber to the home network that was suppose to be 80% in place by 2004.

Instead of building out that network he invested in lobbying, restored the monopoly and entered vertical markets. In 1996, SBC maintained phone lines and wasn't even allowed to sell long distance. Now look at them!
Frankly, what is his motivation to build out this fiber network? There's no competitors to speak of beyond cable and that product is no better than dsl. So what's his motivation to replace his already paid for copper network with a billion dollar fiber network? He has no motivation. And that's why none of it is done.

As a consumer, an American and someone in the ISP industry, I can't stand Whitacre. But as a stockholder he did no wrong. After finding out about his announced retirement (on BBR) I set my trading account to dump my 177 shares first thing when the market opens Monday. I think that this day signifies the peak of the telco dynasty. In the next few years the power companies are going to enter the ISP market and for the first time the telcos are going to face real competition.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: No demand for fiber to the home?!?!?!@!W#$

said by T1 Rocky:

said by dynodb:

Currently there's no great demand for FTTH- quite a few are still satisfied with 1.5M (or even less) DSL.

There's no demand for fiber to the home???? How do you figure that? I couldn't disagree with you more.
I said no great demand. BBR posters aren't representative of the market- for instance, Verizon is only getting 10% penetration the first year FIOS is introduced in an area, and 15% in areas it's been available for over a year.

When 85% of the people who can get it don't, I'd characterize that as less than great demand- especially given that they're deploying to more urban parts of the country where one would expect overall broadband usage to be higher.
flankspeed8

join:2001-07-20
Saint Paul, MN

Re: No demand for fiber to the home?!?!?!@!W#$

They really aren't advertising it or pushing it that much. Many of the initial installs are word of mouth. The demand IS there when people learn about it.

alchav

join:2002-05-17
Palm Desert, CA
Well I went on the Record years ago when I declared Verizon with their FTTH FiOS was the clear winner. Verizon Stock Holders think differently, they think like some of the short sighted members on this board, that they should have used some of their Copper Infrastructure. I think AT&T is 5 years behind with their FTTN. Someone said they can just push Fiber from there to the home, but it's not that easy. I'm sure all the equipment has to be changed. So AT&T will be playing catch-up for a very long time, and their Stock Holders will be crying.

ninjatutle
Premium

join:2006-01-02
San Ramon, CA

Re: FTTH

Is that what they teach people in the desert?

Fiber is fiber. No need to rip out existing fiber for new one if its perfectly useful. All they would have to do is piggyback onto the box.

Its like if I went from DSL to Cable HSI in the home. I wouldnt toss out my routers and ethernet. I would just throw out the DSL modem or sell it on ebay.

alchav

join:2002-05-17
Palm Desert, CA

Re: FTTH

said by ninjatutle:

Is that what they teach people in the desert?

Fiber is fiber. No need to rip out existing fiber for new one if its perfectly useful. All they would have to do is piggyback onto the box.

Its like if I went from DSL to Cable HSI in the home. I wouldnt toss out my routers and ethernet. I would just throw out the DSL modem or sell it on ebay.
No, The Desert is way behind in Technology, but we do have FiOS. I'm an old PacBell Telco person, so I was talking about the Electronics or Termination Equipment. I know Fiber is Fiber, but FTTN is way different than FTTH. FTTN has more equipment, and I don't think most people like the large Nodes throughout their neighborhoods.

ALC
guardfrog

join:2004-08-27
Dallas, TX
AT&T won't have to replace customer equipment if it eventually upgrades to FTTH.

Verizon, however, will have to replace all of its equipment, including customers' set top boxes, when it eventually upgrades to a 100% IPTV platform (as it has said it will eventually). Those costs will be on top of the $30+ billion it's already spent.

morbo
Complete Your Transaction

join:2002-01-22
00000

goodbye turd bird. hello FTTH?

maybe now they will get their heads out of their asses and do something useful.

phattieg

join:2001-04-29
Winter Park, FL
Reviews:
·Bright House

Hmmm...

I hope this doesn't mean they are going to turn into a crappy company again. I find irony in the fact that AT&T Broadband owned what is now Comcast in my area, but under their ownership, the city was going to "pull the plug" on them because they had so many problems. Now the other day, I'm driving down the road and I see an "AT&T Broadband" bill board and thought "I doubt this city will ever recover from those days.". If you lived in Jacksonville when AT&T Broadband was here, you'd know why I find that bill board amusing. So I guess ol' Ed is gonna retire now, and collect lots of money for work he watched others do. Nice job Ed, have a great life.
--
SIPPhone/Gizmo # 17476200648 / PIMPNET Chatline / Ran by Asterisk & Slackware 10.1.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11

Re: Hmmm...

Totally different company. ATT Broadband was part of the old AT&T (long distance, etc.). SBC was still Southwestern Bell when AT&T was in the cable biz.

All of which illustrates what a dumbass move it was for them to adopt the old AT&T name and logo.
--
Toolmaster of La Grange.

phattieg

join:2001-04-29
Winter Park, FL
Reviews:
·Bright House

Re: Hmmm...

said by RadioDoc:

Totally different company. ATT Broadband was part of the old AT&T (long distance, etc.). SBC was still Southwestern Bell when AT&T was in the cable biz.

All of which illustrates what a dumbass move it was for them to adopt the old AT&T name and logo.
Exactly my point... Thats why I said "this town isn't ready".. They shot their own foot off trying to keep the same name... I would have preferred anything else, including SBCAT&T... That would have been a cool name...
--
SIPPhone/Gizmo # 17476200648 / PIMPNET Chatline / Ran by Asterisk & Slackware 10.1.

RockyBB
Premium
join:2005-01-31
Steamboat Springs, CO

1 edit

April was a bad month...

... for Joe Nacchio, who could have had it all without the legal fees...

... and for his former rival at AT&T, Randall Tobias .... »www.9news.com/news/world/article···id=68918

ThrowDemsOut
If you can't convince 'em, confuse 'em
Premium
join:2002-03-03
Mullica Hill, NJ
kudos:4

Stephenson young CEO at 47; could be around a long time

Randall Stephenson, 47, will be promoted to CEO from his current post as chief operating officer.
Here is the AT&T bio on Stephenson:
»www.att.com/gen/investor-relations?pid=7824
Mr. Stephenson began his career with Southwestern Bell Telephone in 1982 in the information technology organization in Oklahoma. He then progressed through a series of leadership positions in finance, including an international assignment in Mexico City, and in 1996 was named controller for SBC Communications. Additionally, Mr. Stephenson has served as senior vice president-Performance Assurance and senior vice president-Consumer Marketing.

...serves as vice chairman of the White House's National Security Telecommunications Advisory Committee.

Stephenson holds a Bachelor of Science degree in accounting from the University of Central Oklahoma and a Master of Accountancy degree from the University of Oklahoma.
So, Stephenson is a money guy and not really a technical or marketing person. I expect a lot of emphasis on managing assets and getting max return for investors. And not as much emphasis on technical or marketing innovation.
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morbo
Complete Your Transaction

join:2002-01-22
00000
Reviews:
·Charter

1 edit

Re: Stephenson young CEO at 47; could be around a long time

said by ThrowDemsOut:

»www.att.com/gen/investor-relations?pid=7824
...serves as vice chairman of the White House's National Security Telecommunications Advisory Committee.
wow. AT&T committed illegal spying on the american public by cooperating with the NSA. and this guy serves on the white house national security committee? disgusting.

verolom

join:2002-03-23
Reston, VA

Re: Stephenson young CEO at 47; could be around a long time

AT&T commits "illegal spying" all the time, it's called running the network. Seems like you use them either way.

morbo
Complete Your Transaction

join:2002-01-22
00000
Reviews:
·Charter

1 edit

Re: Stephenson young CEO at 47; could be around a long time

there's a difference. and yes, i use them for now for lack of reasonable alternatives. doesn't mean i agree with their actions.

i'm in the process of slowly weening myself and my employer off their system though. at work we use them for phones and dsl--and we were using them for long distance. the monthly long-distance bill was $50-80. $25 of that was before we made a single call. then add taxes and fees. simply unbelievable. now our long distance bills are $5-$15. it's nice to have real alternatives.

verolom

join:2002-03-23
Reston, VA

Re: Stephenson young CEO at 47; could be around a long time

Oh, it is unbelievable how much they charge. What is unfortunate is that despite customers having alternatives they continue to charge that much and obviously collect revenues.

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Stephenson young CEO at 47; could be around a long time


there's a benefit to being THE phone company even if the true monopoly isn't like it used to be. imagine all the old folks out there that don't want to change, don't realize what they are paying, etc. ... profit!
NormanS
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:4
Reviews:
·SONIC.NET
·Pacific Bell - SBC
said by morbo:

wow. AT&T committed illegal spying on the american public by cooperating with the NSA. and this guy serves on the white house national security committee? disgusting.
That was David Dorman's AT&T. When that was going on, Ed Whitacre's SBC apparently wasn't part of that activity. The EFF lawsuit appears to recognize this, and that the problem with the new AT&T is that former SBC networks will be merged with the old AT&T networks.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Stephenson young CEO at 47; could be around a long time

if i recall correctly, one of the NSA spy rooms is in St. Louis, Missouri. that's SBC.
raybrett

join:2001-02-20
Saint Louis, MO

Re: Stephenson young CEO at 47; could be around a long time

Not necessarily. There were separate AT&T and SBC offices.

Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12
said by ThrowDemsOut:

So, Stephenson is a money guy and not really a technical or marketing person. I expect a lot of emphasis on managing assets and getting max return for investors. And not as much emphasis on technical or marketing innovation.
So what you're hinting at, is the FTTN plan isn't likely to change?
--
Oh I'm so creative and all my programs are so easy to use ...

MarkyD
Premium
join:2002-08-20
Oklahoma City, OK
said by ThrowDemsOut:

Stephenson holds a Bachelor of Science degree in accounting from the University of Central Oklahoma and a Master of Accountancy degree from the University of Oklahoma.
maybe us Oklahomans will see something innovative for once
--
-Put this in your profile if you know someone who is fighting, has survived, or died from ninja attacks.

BabyBear
Keep wise ...with Nite-Owl

join:2007-01-11

Shhhhh

What no mention of the NSA back rooms under his watch!?!

Hope the cords of his 'Golden Parachute' get caught around his neck!

odreian615

join:2006-01-18
Chicago, IL
Reviews:
·AT&T Midwest

Re: Shhhhh

Click for full size
OH YEAAHHHHHHHH
short09

join:2006-07-21

pay package

eddie will get a boatload of money. expect it to be at least $100 million. give me that money and ill spend it wisely and pay off everything i owe. ed will just put that money into some overseas bank account

footballdude
Premium
join:2002-08-13
Imperial, MO

Re: pay package

from today's St Louis Post Dispatch:

By MICHELLE ROBERTS
Associated Press Writer
Whitacre, 65, had another year on his contract, but Patrick Comack, an analyst for Zachary Investment Research, said Whitacre's decision to leave sends him out on top.

"He built AT&T into a juggernaut," said Comack, who is often critical of AT&T because of the ongoing competition it faces from cable television. "He's highly respected on Wall Street, a straight shooter."

He'll collect more than $161.6 million, including $73.8 million in deferred compensation and the $84.7 million in his pension fund in his retirement package. He'll also make more than $1 million per year for three years as a consultant for the company, according to AT&T's proxy statement. During that time, his benefits will continue and he'll get some tax help, including the payment of about $15,600 in taxes per year.

But with the stock trading at a five-year high, three shareholder-driven initiatives to limit compensation and pension funds for AT&T executives have failed.

"I'm not sure anyone is worth that kind of money, but if anybody is going to get it, at least he did his job," Comack said of Whitacre.

Because of recent successes, the board approved a 6.2 percent increase in monthly benefits for AT&T's oldest and poorest retirees. Roughly 88,000 former employees who retired before 1996 and receive less than $1,200 per month will get the increase starting in October, Whitacre announced Friday.
--
What's certain about Darwinism is that it would take less time for (1) a single-celled organism to evolve into a human being through mutation and natural selection than for (2) Darwinists to admit they have no proof of (1) - Ann Coulter

Old_Grouch
Don't just sit there silly DO something
Premium
join:2004-05-26
Greenwood, IN
kudos:1

Re: pay package

said by footballdude:

from today's St Louis Post Dispatch: "He's highly respected on Wall Street, a straight shooter."
Only time he ever shot straight was if an employee was foolish enough to turn their back, blink or believe his pet phrase: "trust me".

LilYoda
Feline with squirel personality disorder
Premium
join:2004-09-02
Mountains
said by footballdude:

Because of recent successes, the board approved a 6.2 percent increase in monthly benefits for AT&T's oldest and poorest retirees. Roughly 88,000 former employees who retired before 1996 and receive less than $1,200 per month will get the increase starting in October, Whitacre announced Friday.
At least some humanity peaking its head through this world of money...
--
"Money and sex, storage and bandwidth: only too much is ever enough"
Arno Penzias - Former Head of Bell Labs, and Nobel prizewinner
Chosen1

join:2001-08-05
Orange Park, FL

Higher

Try 158.5 Million.

»money.cnn.com/2007/04/27/news/ne···07042708

-Chosen1

halo5

join:2000-07-20
Dayton, OH

bye

Cya chump!
pepperxn

join:2001-02-21

at&t

In a Forbes magazine article, written a few months ago, it said that he would retire in April 2008. Also, it said that at&t is planning one more huge acquisition before then, and they listed several possible companies: Qwest, Directv, Echostar/Dish Network, Time Warner, Yahoo, and some others. The article states that they buy companies that are having problems, but it's not the company's fault.

Could we possibly see another at&t acquisition before June?

Recently I read that at&t will be buying back stock this year.

Rick
Premium,MVM
join:2001-02-06
Waterbury, CT

While I certainly haven't been the biggest AT&T fan

BBR has ever seen, namely because of their lack of a FTTH initiative..I do have to say if anyone has earned his retirement, he certainly has.

He built one monster sized telcommunications company all over again and ran it with a lot of efficiency.

And, he's certainly going out on a high as far as his companies shareholders and Wall Street goes.

I think that deserves him a round of applause and a job, well done.

And NOW, hopefully the new guy won't wait another day to drop uverse and get with the REAL program..FTTH!

Something tells me he might. (namely AT&T's last report that only 17,000 customers or so have signed up for uverse so far). Talk about a dog that just won't hunt!
--
The Coyote captured the RR! Roadrunner Rick is now Comcastic!
cwh

join:2006-05-14
San Antonio, TX

Re: While I certainly haven't been the biggest AT&T fan

Rick,

The last count was 20,00, still small numbers but that number is no doubt growing rapidly. They are doing more than 2,000 installs a week and that number should grow to 10,000 a week by the end of the year. The dog may not hunt now, but it looks like it wont be long before it is.

MarkyD
Premium
join:2002-08-20
Oklahoma City, OK

interesting.

I'm on AT&T FTTP, and the fastest speed offered is 6/1. On top of that, it's PPPoE, which equals overhead. In the end, I get 5300/875...
--
-Put this in your profile if you know someone who is fighting, has survived, or died from ninja attacks.
pepperxn

join:2001-02-21

alltel

Just found this on the net:

"Earlier this week the WSJ's Deal Journal blog speculated that AT&T CEO, Ed Whitacre, would acquire the carrier as part of a "swan song" acquisition before he retires."

I know Alltel is CDMA, but I read somewhere that Alltel has GSM in some areas. So they could just add GSM to the rest of their coverage area, while the transition is taking place.

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