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IPhone Transforming AT&T's Brand

How come the iPhone costs less than half the price of the original? Thank AT&T's Randall Stephenson, says USA Today, who when he assumed the post of CEO a year ago, championed the idea of paying Apple $300 per iPhone to keep down the cost. Will AT&T's gamble pay off? "AT&T's role in the iPhone's success could cement its place as the premier cell phone carrier in the USA," says Leslie Cauley. "It's already helped raise AT&T's cool factor, a big deal among tweens, teens and other Web-centric customers."

Indeed, Stephenson says the iPhone is central to the ongoing transformation of the 120-year-old brand. He plans to leverage Apple's appeal to turn the telecom behemoth into the world's biggest wireless player with an intensely loyal user base. "We're all about wireless," Stephenson says. One of his first acts as CEO was to approve the hefty purchase of wireless spectrum holder Aloha Partners for $2.5 billion. It wasn't easy, as Aloha had no operations, revenue or customers, but the licenses were exactly what AT&T needed to shore up its network.

Stephenson has a new mantra for AT&T: "mobilization." This refers to the idea of making voice, data and video services available on mobile handsets. The iPhone is central to that strategy. As Stephenson says, "We're not betting on the handset...we're betting on (Apple CEO Steve) Jobs."

Read the whole story at USA Today »

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