Ed Whitacre, 12/27/99

The 25 most powerful people in networking

Ed Whitacre, chairman and CEO,
SBC Communications

E. Whitacre

Ed Whitacre's well-orchestrated takeover of Ameritech cements him as a mean, lean Bell competitor. His style stems from the days when competitive local exchange carriers (CLEC) were a nuisance, but not a threat. Of course, in 1999, CLECs are not to be ignored, and the classic RBOC answer is to simply own more of the last mile.

That Whitacre does. With Ameritech secured as of November, SBC operates in more than half of the 50 states. That's the tally from acquisitions of Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom and Nevada Bell. But Whitacre is no reactionary. He's clearly entered the age of competitive marketing, owning a string of other well-known brands: SecurityLink, SNET and Cellular One.

Through these brands, Whitacre aims to move into 30 top markets outside of SBC's traditional areas - a deal he struck with the Federal Communications Commission as part of the Ameritech merger. He's set his sights on Boston, Miami and Seattle within 2000, and already has lined up the appropriate regulatory nods. By mid 2001, he'll attack 12 more markets, including Atlanta, Denver and New York, and the company has declared it will reach all 30 markets within 30 months of acquiring Ameritech.

Whitacre plans to lure customers with high speeds. He's slated $6 billion to upgrade his network with fiber optics. That upgrade will reportedly affect 80% of SBC's customers. It's risky, given that SBC's regulated business would require opening up last-mile investments to CLEC competitors. But Whitacre has never shied away from competitors. On the contrary - he swallows them whole.

Related links

Ed Whitacre's biography
From SBC's Web site.

What SBC's DSL announcement really means
Network World, 11/15/99

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Network World, 10/07/99

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Network World, 10/04/99

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