Brand Analysis at&T U-Verse

Case Study

AT&T U-Verse’s position in the Cable and Satellite Industry

Course: STRATEGIC BRAND MANAGEMENT

(MKTG 772)

Participants

History & Overview

In 2006, AT&T, the nation’s largest provider of both mobile and fixed telephony in the United States, decided to make their second attempt at a triple-play-telecommunications service. They announced U-verse, a brand of AT&T, which provided high-speed internet, IP telephone, and IPTV services. Launched in June 26, 2006, U-verse, also called AT&T U-verse (AUV), was originally tested and launched in San Antonio, Texas. By the end of 2006, AT&T expanded the products’ availability to other major cities including San Francisco, Hartford and Indianapolis. The following year, in 2007, AUV continued to grow to reach over 2.8 million households by expanding into Milwaukee, Dallas, Kansas City, Detroit, Los Angeles, Cleveland, San Diego, and Oklahoma City. In 2008, Detroit became the first city to offer AUV Voice which exceeded 1 million customers by 2009.  Interestingly AT&T ventured into Entertainment Category even before the launch of AUV in 2006. In 1999, AT&T and Liberty Media Group, an American media conglomerate, merged to provide entertainment service. This was a failed launch and in 2001 AT&T decided to spin off Liberty Media group due to conflict of interests (CNN money, Nov 2000).

AUV has made tremendous strides in growing its market over the years. In 2011, AUV had reached 3.8 million customers across 22 states and was available to 30 million homes. Today, the brand offers AUV TV, AUV Voice, and AUV High-Speed Internet- combined, these services total 14.4 million customers; resulting in 7% quarter over quarter growth in Q3 of 2012.

AUV offers each line of services in different package levels which may then be bundled together. For example, AUV TV has various channel packages which allow customers to buy an array of additional channels. They may also buy channels...