Cingular Wireless rebranded as AT&T - Is this a good idea?

Does anybody think it is foolish of AT&T to rebrand the Cingular brand as AT&T?

I think this is a mistake since I perceive AT&T to be an old-style brand while I consider Cingular to be modern. Most of Cingular's features that generate higher revenues are geared toward the young crowd. I am not sure if this segment will embrace AT&T especially since Verizon is so well known.

Here is an article from the Wall Street Journal for those who are interested.


Bye, Cingular, in AT&T Rebranding
By DIONNE SEARCEYJanuary 12, 2007; Page B3
AT&T Inc. will rebrand its Cingular Wireless service with the AT&T name starting Monday, a move aimed at bringing together the company's newly acquired entities and services under a single moniker.
The rebranding comes just a few weeks after San Antonio-based AT&T completed its $85.8 billion purchase of BellSouth Corp. and took over sole control of Cingular. Before, the two had owned Cingular together.
The new name is a step back in time for Cingular, which bought the old AT&T Wireless in 2004 and eventually dropped the AT&T name altogether. AT&T executives hope a sole brand will signal to consumers that the company is a one-stop shop for myriad services including wireless, TV and land-line phone. But the coming months may be confusing for some Cingular customers who not long ago were absorbed from the old AT&T Wireless.
A Cingular print ad
"I think what we're going to see is initially there may be some concerns caused by, well, who are you?" said Scott Lerman, chief executive of Lucid Brands LLC, a New York brand-consulting firm.
The service will be sold as "Wireless from AT&T." Initially, AT&T ads will combine Cingular's logo, an orange X-shaped character named Jack, with the round AT&T trademark. AT&T executives say using both logos will train consumers to recognize that Cingular is now AT&T.
Over the coming months, AT&T will phase out the Cingular name altogether. This move might prove unpopular with young consumers who prefer it over AT&T's stodgy brand, according to branding and advertising experts. Cingular has cultivated an image of being a hip company, most recently with its partnership with Apple Inc. to offer the iPhone.
But in the long term, Mr. Lerman said, AT&T will benefit from the efficiency of having its well-known name appear on all its services. AT&T executives wouldn't say how much the rebranding will cost as they change signs in roughly 2,000 stores as well as employee uniforms and billing letterhead. But executives estimate 20% of the expected operating-expense savings from the merger will come from advertising, because of the single AT&T brand.
"AT&T is not trying to go back to being the old AT&T," said Karen Jennings, a senior executive vice president for AT&T. "We know we have to freshen up our brand attributes."
AT&T has plans to push its wireless service to corporate customers and consumers while increasing advertising revenue. With its 58.7 million customers, Cingular is the biggest wireless company in the U.S. by subscribers.
Placing the AT&T brand on wireless service could dredge up bad memories for some consumers who had numerous service problems with AT&T Wireless. Customer experiences have improved since Cingular took over that company, Ms. Jennings said.
AT&T will begin airing TV ads merging the two company's logos as soon as Monday. One ad shows harvesters leaving trails of Cingular's trademark five bars in a field of grain, which morph into the AT&T circular logo. New employees have been added in wireless stores to tout other AT&T services such as broadband and TV.