Title: Drain BrainII. Author: Scott Woolley III. Article Summary: There has been a talent exodus from AT&T, even though AT&T is one of the best and largest companies in the United States. There are several problems at AT&T they are:a: AT&T is no longer the regulated monopoly that it has thirty years ago, but it has a similar dilemma: a massive pile of assets and an institutional reluctance to threaten those assets with new technologies.b. Nine senior executives have recently jumped ship. The talent is just as restless a few levels now:15,300 of the companys 62, 000 Middle managers took early retirement last month, 50 percent more than the buy out plan was designed to attract c. AT&T personnel need 17 approvals before a decision to be implemented. d. Techies have been fleeing AT&T because they don't want to be attached to obsolescent technologies. e. David Isenberg, posted a devastating critique of his then employer on the Internet a year ago. The pamphlet entailed "The Rise of the Stupid Network," chastised AT&T and other established telcos for not ditching their old technology. He compared them to 19th century sailing merchants who wrote "responded to the threat of steam by inventing faster sailing ships." f. As AT&Ts new boss, Armstrong a dilemma: How to embrace new technologies without obsoleting a huge fixed investment. " People stuck with an existing system always find it harder to change, "But neither acquisition addresses the fact that the long-haul network itself is decrepit. g. Ma Bells customers made 8.7% more cost last year than in 1996, but revenues brought goals calls work flat at $4.2 billion. Earnings, more than 90% coming from long distance, dipped 20% to $4.6 billion. h. Long distance will be at 5 cents per minute by the end of the year, and that will still be artificially high compared to cost. Compare that with the prices AT&T now charges, in which typical consu...
