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AT&T’s New Mobility Business Unit a ‘Major Opportunity’ for Many Players

By Craig Galbraith
August 28, 2014 - News

In a move that could have a significant effect on the indirect sales channel, AT&T has created a new business unit called the Mobile & Business Solutions Group.

Ralph de la Vega, who has led the charge for AT&T’s wireless unit since 2008, is being called upon to head up the new division. Glenn Lurie, formerly president of emerging devices, will replace de la Vega as CEO of AT&T Mobility.

It’s all part of a move to capitalize on the growing need for mobile connectivity.

Businesses account for about half of AT&T’s mobile revenue, BusinessWeek pointed out, making it apparent that a move such as this would better serve these subscribers. AT&T may now be in a better place to sell data, wireless and landline services to businesses.

“With the ascension of mobility, service providers of all stripes must address management ranks to put the best, most agile leaders in the areas where revenue and in particular growth has shifted," noted Rich Karpinski, principal analyst with 451 Research. “AT&T has a particularly strong team to choose from, allowing it to draw internally rather than having to look outside the company. … Mobility is just one part of AT&T’s enterprise unit – with not just wireline but also cloud/data center major contributors as well. But as on the consumer side, mobile is the technology that is driving the greatest change for businesses, representing both a major opportunity for AT&T and also a major risk if that transition isn’t managed properly. As he did on the consumer mobile side, de la Vega will be tasked with driving a mature business to both grow and maintain its position at the top of the market."

Follow senior online managing editor @Craig_Galbraith on Twitter.

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