Building on a recently expired contract, AT&T and GM have signed a contract for nearly $1 billion in which the nation's largest phone company will oversee the nation's largest automaker' global IT network involving more than 150 telecom companies worldwide. The contract which is good for five years is part of what the Dow Jones News Service sites WSJ Online and MarketWatch term is AT&T's goal of expanding its corporate-service segment. ComputerWorld ran a quote by GM's CIO and group vice president, Ralph Szygenda, explaining the primary aim of the deal: "It follows the mindset that information technology providers have to work as one in a corporation."
Sources: Wall Street Journal, MarketWatch, ComputerWorld
Commentary: AT&T Q4 2006 Earnings Call Transcript • Cramer's Take on GM • Cramer's Take on T
Stocks/ETFs to watch: General Motors (NYSE:GM), AT&T (NYSE:T). Competitors: Verizon (NYSE:VZ)
Seeking Alpha's news summaries are combined into a pre-market briefing called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only a few seconds to sign up.