AT&T in 2005: Merging with SBC

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"Today's agreement is a huge step forward in our efforts to build a company that will lead an American communications revolution in the 21st century"

- Edward E. Whitacre Jr., SBC chairman and CEO¹.

Introduction

On January 31, 2005, SBC Communications (SBC) and AT&T announced they were merging to create a premier communications company with unmatched global reach. The transaction sought to combine AT&T's global systems capabilities, business and government customers, and fast-growing Internet protocol (IP)-based business with SBC's local exchange, broadband and wireless solutions. The combined entity believed that it had the assets, the resources and skill sets to innovate and deliver advanced, integrated IP-based wireline and wireless communications services to customers across the world.

Since AT&T's break up in 1984, the market had been divided into local and long-distance phone sectors. The merger between SBC and AT&T looked all set to dismantle the telecom industry structure and trigger-off further consolidation in the American telecom industry. AT&T and SBC believed that the merger would create a fully integrated telecommunications player, a company able to offer a variety of telephony services to households and businesses worldwide...

Excerpts >>

1] http://sbc.merger-news.com/materials/am.html

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