The 25 most powerful people in networking
Network World, 01/04/99
C. MICHAEL ARMSTRONG CEO, AT&T
 The good news?
Mike Armstrong really has things moving over at AT&T - with one exception.
The bad news?
The one exception is revenue.
While the aggressive Armstrong is cutting costs and boosting AT&T 's earnings and share price, the positive results are mostly due to draconian cost-cutting efforts that can only take the nation 's biggest carrier so far. Consider that in the company 's third fiscal quarter, overall revenue grew by only 4.3%.
But Armstrong knows that revenue growth is key, and many in the industry are confident that the bold moves he 's making will pay off in the future. His decision to acquire Teleport Communications Group is helping boost AT&T 's local presence, which should also get a rise out of the planned buyout of cable giant Tele-Communications, Inc. (TCI). Under his direction, AT&T 's services arm is rocking and rolling, showing 34% revenue growth in the third quarter. In fact, AT&T Solutions signed a six-year, $1.4 billion contract to take over Banc One 's voice and data networks.
Talk about big deals: AT&T also entered into a planned $10 billion joint venture with British Telecommunications to provide one-stop shopping for large international companies. That should help Armstrong and team compete more effectively against Bernie Ebbers and the MCI WorldCom juggernaut in the global services fray. Armstrong would like AT&T to be a bigger player on the Internet front, but AT&T WorldNet revenue is ramping up nicely, and Armstrong is investing heavily
in the network technology needed for a convergence future. And with the end of 1998 fast approaching, Armstrong pushed through a deal to buy IBM 's Global Network for $5 billion.
ARMSTRONG 'S CHALLENGE: For 1999, Armstrong will have to wrestle with regulators to get his TCI buyout approved. If Armstrong wins, he 'll have to invest a fortune in upgrading the aging cable plant for telephony. But more important, if AT&T doesn 't start ringing up more sales, Armstrong 's wheeling and dealing may wind up looking more reckless than aggressive.
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