..........

. . . . . . . . . .

AT&T Bell South

Executive Committee Proposal Effectively Integrating AT&T | Bell South

Finus1IS535

..........

. . . . . . . . . .

AT&T, Inc. Executive Committee Proposal Plan

Effectively Integrating the Proposed AT&T | Bell South Merger

Company Bios

AT&T, Inc.: Global networking – that’s what AT&T does better than any other provider

in meeting the complex communications needs of multinational companies from London

to Chicago to Shangai. Many large organizations have experienced high failure rates for

the integration of information and database management systems for large complex

systems (2). If the integration is not properly managed, firms can emerge with a tangled

hodgepodge of inherited legacy systems built by aggregating the systems of one firm

after another (8).

Bell South Corp.:

BellSouth Corporation is a Fortune 500 communications company headquartered in

Atlanta, Georgia. BellSouth has joint control and 40 percent ownership of Cingular

Wireless, the nation's largest wireless voice and data provider with 55.8 million

customers.

Backed by award-winning customer service, BellSouth offers the most comprehensive

and innovative package of voice and data services available in the market. Through

BellSouth Answers®, residential and small business customers can bundle their local and

..........long distance service with dial-up and high-speed DSL Internet access, satellite television

and Cingular® Wireless service. For businesses, BellSouth provides secure, reliable local

and long distance voice and data networking solutions. BellSouth also offers print and

online directory advertising through The Real Yellow Pages® and

YELLOWPAGES.COM™ from BellSouth (www.bellsouth.com).

AT&T Inc. and BellSouth Corporation have announced an agreement to merge the two

companies, a combination that will create a more effective and efficient provider in the

wireless, broadband, video, voice and data markets. The merger will streamline the

ownership and operations of Cingular Wireless, which is jointly owned by AT&T and

Bell South. The new company will be more innovative, nimble and efficient, providing

benefits to customers by combining the Cingular, BellSouth and AT&T networks into a

single fully integrated wireless and wireline Internet Protocol network offering a full

range of advanced solutions. As a result, the combined company will be better able to

speed the convergence of new and improved services for consumers and businesses, and

embrace the industry's shift to Internet Protocol network-based technologies (9). In the

1990s, SBC merged with several companies. In order to achieve the enhanced potential

for shareholder value growth and to help provide a seamless customer experience, many

functions and activities throughout the corporation have been integrated as shall continue

to be to achieve maximum output. 

Data integration is critical to the success of enterprises today. Competition

constantly drives businesses to find better ways to handle information, including

2

having centralized stores of data available in real-time for informed decision-making;

buying new applications that use existing data without adding overhead to existing

applications; and improving overall cost-effectiveness and productivity in accessing

and maintaining enterprise data (9). The telecommunications industry has tried to

integrate and consolidate its infrastructure. It has invested in several integration programs

and generations of middleware solutions from CORBA and MQSeries to EAI, J2EE, and

OSS/J. However, the results have been mixed. Integrations have worked, but scalability is

still a major concern (4). Some of the most challenging data integration scenarios involve

gathering data from multiple databases across multiple platforms between the two

organizations. Solutions are typically evaluated based on low cost of ownership, respect

for the integrity of existing systems, lightweight installation, ease-of-use, predictability,

and scalability. Furthermore, in most other companies, a digital firm is still more vision

than reality, but this vision is driving them toward digital integration. This proposal

presents an effective solution: Integrated Tracking System (ITS). This proposal

integration software is an approach to effectively integrate database IS and IT

infrastructures which imposes a rigorous discipline on the systems development process

during the ATT and Bell South Corp. anticipated merger. This proposal systematically

researches a broad base of literature to develop a comprehensive model to represent a

proper integration of combined databases. This implementation will effectively track

AT&T/Bell South mergence and its database integration needs.

3

..........Current Business Issues

AT&T’s Information Technology organization plays a critical role in the accomplishment

of these realities. Also, the new company will help deliver a competitive advantage to its

newly combined corporate business units. Through the IT and management organization,

the new AT&T corporation should continue to build on the successful leveraged model

that captures the cost advantages of a centralized business approach while retaining the

customer intimacy of a decentralized approach. 

Build the best network.

Provide great customer service.

Create unmatched distribution.

Deliver compelling products and services.

SPEED AND AGGRESSIVENESS MAKE THE DIFFERENCE

Forrest Miller, group president, AT&T Corp., said AT&T Corp.'s business objectives

should include:

Executing a flawless integration and capturing all merger synergies.

Achieving the business plan objectives.

Optimizing the legacy AT&T Mass Market businesses.

Excelling in Enterprise to extend our global leadership (9).

4

Listed below is a proposed management model for ITS:

1. Overview

Integrated Tracking System (ITS) is a network organization management tool which

tracks initiative development. ITS inputs can be provided by managers within Network

Service Integration and the New Technology Introductions organizations. ITS provides

numerous status and performance metrics reports. Recipients of ITS initiative systems

will include:

ESS – Executive Support Systems

1. This system segment will pool data from diverse internal and external sources.

Makes the sources available to executives in an easy-to-use form (8).

MIS - Management Information Systems

2. A management level IS capable of processing routine reports, simple models,

and lower-level analysis (8)

DSS - Decision Support Systems

3. A management level IS capable of processing interactive and simulation

analysis (8).

TPS – Transaction Support Systems

4. A supervisory level IS capable of sorting, listing, merging and updating data

(8)

2. AT&T | Bell South Integration Project Tracking

5

.......... Project Team Members and Team Functions

Current Status and Progress

Current DBMS Integration Phase and Progress

Deployment Dates & Locations

Milestones

Project Status Notes

Current Jeopardy Status and Jeopardy Progress

Business Costs Provided

Business Case Approvals

With the new AT&T, powered by SBC, and much anticipated Bell South, Corp. the new

AT&T needs to keep in mind that it is important to integrate its internal business units,

goals, customers' businesses and their goals, then focus on adding value by participating

in the achievement of those goals. ITS is a solid investment that emphasize best cost,

continuous improvement, and innovations that will enhance external customer service. 

3. General ITS Financials and Cost Benefits

AT&T and BellSouth are expecting that the combined company will

have a strong balance sheet with solid credit metrics. Both companies

have single A-credit ratings.

Input tool for network costs in business cases for new DBMS products.

Cost development tool for yearly budget.

Standard time/cost assumptions.

6

Provides network finance cost details to help manage individual budgets.

Utilizing the regional networks to approve the technical, cost and data

related issues for all new and any convergence.

Provides volume sensitivities/scenarios for Marketing/Finance.

Identifies cost details for equipment purchase planning by management

teams.

Help to be reduce transaction costs as the new company grows (8).

Revenue vs Network Costs

0

5001000

1500

2000

2002 2003 2004 2005 2006 2007

$Mill

ions Rev

Ntw k Cap & Exp

(sample only)

4. Performance monitoring and analysis

AT&T's Integrated Network Connection Service (INCS) is an integration process of

voice and data solution that provides dynamically allocated bandwidth between voice and

data. By integrating voice, data and IP services from both organizations on one access 7

..........circuit your applications effectively use the full circuit capacity at every moment,

allowing more traffic to be carried on fewer high-speed access lines. The result is more

traffic capacity at lower costs. INCS delivers cost savings through integration of, and

dynamic bandwidth allocation between data, Internet and voice services. Simplifying

both organizations operations allows AT&T to keep pace with evolving innovations,

staffing shortages and servicing priorities and provides necessary bandwidth for future

business needs. Total cost of ownership can be reduced with a complete solution for your

business needs. (9)

5. Proposed ITS operating principles

Continue to provide a central reporting organization that is highly efficient, uses

disciplined and repeatable processes, and still retains the local responsiveness to

our clients. (9)  

Aggressively move toward establishing one common applications infrastructure

for all corporate systems. (9)   

Aggressively move towards implementing a technical architecture between both

enterprises that targets common platforms for the following:   

o PC/Desktops   

o E-mail   

o Desktop Software   

o Mid/Large-range Servers   

o Mainframes 

8

Deploy all of the above in partnership with Procurement to maximize common

vendors and contracts. (9)  

Provide quick access to necessary corporate data, and deliver it to the point where

it is most useful and can be best used to benefit the business. (9)  

New innovations will pay back their cost, and only value-added activities will be

undertaken. (9)

All of ITS will be designed to minimize the time required to integrate DBMS in order to

provide earliest possible value to our clients.

9

..........

6. ITS DB Security Features

• Windows NT Security

• User must have a Windows NT logon and password to access the ITS

Server

• Application Security

10

• ITS users access permissions must be granted by an ITS Security

administrator.

• Group Level Security

• Users have update access to data and functions applicable to their work

group.

• User Level Security

• Fully in compliance with all AT&T security and disaster recovery

requirements

Executive Commitment

MISSION – work together with AT&T and Bell South organizations to identify,

anticipate, and operational applications of quantitative business methods and

management information systems that can substantially improve ATT|Bell South

business developments and management processes.

ORGANIZATION: Consolidation over last three years of groups from AT&T | Bell

South laboratories enhance efficiency, effectiveness, and focus.

Conclusion

MIS have been around since the '80s, having evolved from the first computer estimating

packages to progressively take in functions such as production scheduling, stock control,

11

..........cost analysis, online customer ordering and links to customer relationship management

databases(5). Most of the thinking about software process is about understanding

requirements early, signing off on these requirements, using the requirements as a basis

for design, signing off on that, and then proceeding with construction (6). With that in

mind, it can be concluded that ITS MIS is an effective tracking solution for the future

integration of the many ATT | Bell South DBM system’s. With proper management and

structure implementation the combined enterprises are surely to have a cost-effective and

reliable integration tracking service that is capable of providing simplicity, performance,

redundancy, stability, seamless network integration, a network for today and tomorrow,

and in perfect alignment with current and future ATT goals.

Important

Important reminder: Until the merger is approved, BellSouth remains a separate and independent company and both AT&T and BellSouth remain the owners of Cingular. If you have any contact with BellSouth, its employees or its customers, be sure you're on top of the following legal requirements. Failure to observe these rules could put the merger in jeopardy.

Requirements: Until this merger closes, AT&T and BellSouth are two separate and independent companies with each own independent agendas, objectives and business plans. Unless you do business or have ongoing regulatory relations with BellSouth today as a customer, vendor, or competitor, through a Cingular relationship or in some other capacity, or participate in the approved merger planning process, you should not be calling or talking with anyone at BellSouth to discuss the merger. If you have an existing and ongoing business, regulatory, or approved planning process relationship with BellSouth, you should continue to deal with BellSouth as an independent, separate company and deal with BellSouth staff the same way you dealt with them in the past.

12

Reference List

1. H Jeff Smith . Database for Advances in Information Systems. New York: Summer

2002.Vol.33, Iss. 3;  pg. 8, 15 pgs

2. Pappalardo, Denise. New AT&T talks about business focus. 06 February 2006.

Forrester. 1 Apr. 2006

<http://www.forrester.com/Research/LegacyIT/0,7208,25523,00.html>.

3. Technology Research Institute. A Market Research Report & Analysis of

Telecommunications Carrier & Vendor Opportunities. October 2005

<http://www.technology-research.com/oss.htm>

4. Baker, Dan. “Case Study: AT&T’s Migration to Service-Oriented Architecture.”

October, 2005

5. Simon Eccles. “Managing integration.” Printweek. London: Mar 2, 2006. pg. 36.

<http://proquest.umi.com.proxy.devry.edu/pqdweb?

did=1007153681&sid=4&Fmt=3&clientId=44941&RQT=309&VName=PQD>

6. Fowler, Martin and Sadalage, Promod. Evolutionary Database Design. Last

Significant Update: January 2003. <

http://www.martinfowler.com/articles/evodb.html>

7. Nadji Tehrani . Call Center Solutions. Norwalk: Dec

1999.Vol.18, Iss. 6;  pg. 4, 3 pgs. http://proquest.umi.com.proxy.devry.edu/pqdweb?

13

..........did=49797641&sid=12&Fmt=3&clientId=44941&RQT=309&VName=PQD

8. Kenneth C Laudon & Jane P. Laudon. Management Information Systems: Managing

the Digital Firm. 9th Edition. 2005. Prentice-Hall, Inc.

9. Information found on www.att.com or an AT&T Inc. intranet site.

14