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(Revised from original 2004 version)
Provides an update on CEO Michael Armstrong's "Project Grand Slam" strategy to build the value of AT&T by offering a complete, integrated telecommunications solution to both corporate and residential customers, including wireless and wire line telephone, Internet, cable television, and network management. By July 2004, AT&T sold its cable business to Comcast, sold its wireless business to Cingular, and was downgraded to junk bond status. Soon thereafter, AT&T announced that it would abandon its local telephone service due to a ruling by the FCC that made them uncompetitive as resellers. The strategic question is whether AT&T can find ways to grow and create value for its shareholders, or is it time to sell out to one of the RBOCs?
Keywords: Business Exit or Shutdown;
Business or Company Management;
Business and Shareholder Relations;
Bradley, Stephen P., and Kerry Herman. "AT&T 2000-2004." Harvard Business School Case 705-425, July 2011. (Revised from original October 2004 version.)