Case | HBS Case Collection | October 2004 (Revised July 2011)

AT&T 2000-2004

by Stephen P. Bradley and Kerry Herman


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; Customers; Business or Company Management; Failure; Business and Shareholder Relations; Networks; Corporate Strategy; Internet; Wireless Technology; Value Creation; Telecommunications Industry;


Bradley, Stephen P., and Kerry Herman. "AT&T 2000-2004." Harvard Business School Case 705-425, October 2004. (Revised July 2011.)