DEL.ICIO.USQ&A / RALPH DE LA VEGA
AT&T Mobility CEO: ‘Emerging devices’ are next growth wave
The Atlanta Journal-Constitution
Tuesday, October 28, 2008
Ralph de la Vega’s expanded role at AT&T isn’t cause for him to move from here to headquarters in Dallas.
De la Vega, CEO of Atlanta-based AT&T Mobility, was recently handed the added duty of consumer markets chief for the entire company.
AT&T
Ralph de la Vega, CEO of Atlanta-based AT&T Mobility. He also has a newly expanded role within AT&T as the company’s consumer markets chief.
He says he’s in the right place by staying in Atlanta to continue overseeing the wireless division and lead AT&T’s effort to offer one-stop-shopping for all of its consumer products.
Despite a faltering economy, AT&T Mobility was the shining star during the company’s third-quarter earnings conference call last week, adding 2 million wireless subscribers during the past three months. De la Vega talked to the Journal-Constitution about the company’s strategy during a sour economy, the future of wireless and talking refrigerators.
Q: Tell me about your expanded role.
A: It’s a terrific role and a terrific opportunity. Rather than just addressing customers for their mobility needs, broadband needs and TV needs, we decided to put that together in one organization. (My role) reflects that the business now encompasses now our mobility products, landline TV service, landline voice service and data service.
Q: What’s the strategy behind creating an “emerging devices” division?
A: Emerging devices — devices we have not thought of as phones — (are) cameras and navigation devices, small computers. It’s the next wave of growth in our industry. A camera may be connected to a computer or a database, your refrigerator could have a data link to order groceries. It’s a very new and emerging and exciting area.
Q: OK, wait. I was intrigued by your last example — your refrigerator would be able to order groceries?
A: There are refrigerators today that have LCD (liquid crystal display) screens so you can go in and set the temperature. In the future you will see devices that have the capability to connect to whatever you can connect them to. It could be your online grocery store, and if you know that you are low on some things, you could order online and have them delivered to your home. It’s a whole new generation of appliances that are going to allow for this connectivity.
Q: Explain to our readers the new quick-messaging phones.
A: What we have found is there is a market where people just want simpler devices that don’t have a big complex operating system. We have put a very affordable and quick-to-use devices. … They are specifically designed for texting and allow for the user to really type much better with that device. I think what we have seen or continue to see is tremendous growth in data and texting in these phones that are other than voice.
Q: Sales of the new iPhone have taken off. Are you planning to reduce the price since clearly the phone is in high demand?
A: No. We don’t have any plans to reduce the price. We think it’s a terrific price for the package that you get. We don’t see the need to lower the price at this point.
Q: What is 4G? When will we see it?
A: The term 4G is used a little bit loosely. There continues to be a little bit of controversy of what it means. People think of it as the next generation of broadband wireless technology — 50 to 100 megabits per second. We have chosen a technology to operate that: Long-term evolution, or LTE. We are beginning to look at using that technology for 2010 or 2011. It’s a little bit out there.
Q: What does you broader role — including co-hosting the company’s earnings conference call last week — mean for Atlanta? Will we see more technology, innovation and more jobs here?
A: I think it’s terrific news for Atlanta. I’m going to be headquartered here. I am going to be living here. This organization is going to provide a huge amount of the growth for AT&T. Wireless is the fastest growing part of our business. It is the heart of the new AT&T. We now call ourselves a wireless centric organization.
Q: Were you surprised by the 50 percent growth in wireless data revenue?
A: We were pleased. We knew we had some really great things going. The only question in our mind was in a down economy, would our customers act in a positive way.
Q: Will the credit crunch and the state of Wall Street impact AT&T Mobility’s plans?
A: From the point of view that because of the unsettled situation in the financial markets, we, like other companies are being very careful with our cash flows. We’re being very careful with our investments to make sure they have a short pay-back period. We’re watching inventory levels, watching expenses.
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