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May 7, 2010

AT&T Continues Freshening Naming and Branding as Apple Grants Extension on iPhone Exclusivity

Apple has granted AT&T an extension of its iPhone exclusivity agreement in a "Faustian" bargain that sees AT&T providing "low-cost and truly unlimited data plans for the iPad."

But the extension is only for six months, and then the service goes up for grabs again, much to the delight of Verizon, whose grab for the iPad was purportedly rejected.

If it's in the stars, Verizon could be getting access to the iPhone in 2011.

Last month I wrote about AT&T's decision to drop its name from its logo. This is a part of the company's attempt to become a "lifestyle company," and its new tagline, "Rethink Possible," really reflects this.

This movement to a "lifestyle company" like Apple, seems to be exactly what AT&T has been up to as it faces the possibility of losing its exclusive agreement with Apple to carry the iPhone. Is it a coincidence that this change happens now? I doubt it.

I also think its recent decision to finally rename it's Hulu-esque video portal with the somewhat strange name U-verse online is part of the company's relentless attempt to look less stodgy and more hip. AT&T's TV Everywhere strategy is one that is close to the hearts of Apple enthusiasts, and Apple is everything to AT&T.

Some think the U-verse name is a "placeholder" while AT&T finds a way to repurpose its video site. Right now, not much has changed for AT&T Entertainment users since AT&T launched it last year.

AT&T seems to be paying attention to naming and branding now because the entire industry is reinventing itself.

Already, the wireless industry is radically changing in ways that are hard to fathom. As Marketing Review says,

"A few examples are Sprint working with Ford to put the Internet on the dashboard. Or AT&T working with power companies to read meters wirelessly, saving money on meter readers. There are many examples. Suddenly the marketplace is different with new competition from many companies like Comcast, Time Warner and Cox."

Or Verizon, which really must be a bane of AT&T's existence, having recently received higher ranking than AT&T in terms of brand ranking.

Half of Verizon's users want an iPhone and would switch if their carrier offered it.

The problem AT&T faces is one that I have written about before, and it's a brand name issue. People who use iPhones need to be educated about their carrier. If AT&T Mobility loses that exclusive agreement at the end of the year, they are in deep trouble.

Too many Apple users are going to look for a fresher, younger, trendy brand name, like Verizon, just for the sake of it. Another segment of them will fall away because so many iPhone users are fed up with AT&T's coverage.

AT&T is playing a brutal game of catch up.

Technorati Tags: Apple, iPhone, iPad, AT&T, Exclusive, naming, Verizon, wireless, UVerse, Rethink Possible, TV Everywhere

Posted by William Lozito at May 7, 2010 8:08 AM
Posted to Branding | Licensing | Marketing | Telecommunications

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