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June 18, 2007

The hazards of rebranding

Is this really all worth it? Cingular, once a joint venture of BellSouth and SBC communications, is the "new AT&T," as the company is dying to let you know and have you tatoo on your arm. It it spending probably hundreds of millions on TV commercials etc. to get consumers to start forgetting "Cingular" and remembering "AT&T." Now there's another cost that Cingular (oops I mean AT&T) may not have thought about.

Cingular's Nascar sponsorship deal with the Childress Racing Team and driver Jeff Burton was grandfathered in three years ago when (Cingular enemy) Nextel signed an exclusive, Nascar-wide promotion contract. Now Cingular is putting "AT&T" on Burton's car, which Nascar says voids the grandfather exemption and breaches Nextel's right to brainwash racing fans in the absence of other telecom outfits. AT&T sued Nascar this year and secured an injunction allowing its logo on Burton's car. Now Nascar is countersuing, alleging breach of contract by AT&T/Cingular.

The funny thing is that, when all is filed, briefed, settled and paid for, AT&T will have no clue in the universe whether changing its name from Cingular was worth it. To me, AT&T evokes Lily Tomlin (1970s Saturday Night Live) in a 50s hairdo sitting at an ancient switchboard eavesdropping on party lines. I kinda liked Cingular.

Posted by Jay Hancock at 10:18 AM | | Comments (0)
        

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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