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By Mel Duvall
Telecommunications giant AT&T has followed months of speculation that it would revamp its technology sourcing strategy by announcing a Domain Supplier program to pick preferred vendors to supply technologies for its core network.
In a statement, the company said it will select and pre-qualify two vendors in each of a number of domains. The selected vendors will then work with AT&T to meet the company's current and future needs, "representing a significant opportunity for them to work in that domain for a set multi-year period." However, the company stressed that being pre-selected was not a guarantee of being awarded the business.
AT&T says the new program is aimed at creating a more collaborative relationship with its equipment and suppliers, allowing it to more closely align its needs with developments in technology. Each of the domains are bounded by a particular technology set, such as wireline access.
"Customer expectations for network reliability have increased, and they are demanding speed to market for new technologies to satisfy today's ever-changing landscape," Tim Harden, AT&T president of supply chain and fleet operations, said in announcing the new supplier strategy. "We must continually challenge and collaborate with our equipment and software suppliers to improve their quality and step up to a higher level of performance."
The change comes at a time when AT&T is facing flack over the quality of its mobile phone infrastructure. In particular, AT&T has been hit by a barrage of complaints from iPhone users in congested urban centers. The company has admitted it is having a tough time predicting how customers will use new devices like the iPhone, making it difficult to plan network capacity. Harden said the new supplier strategy will help the company improve its ability to meet new demands.
"Our goal is to ensure that each investment in network infrastructure accelerates our move towards a network that enables the full promise of the Internet and other game-changing technologies," he said.
Under the new approach, suppliers will work more closely with AT&T by sharing timelines, project roadmaps and other roadmaps. In return, vendors should be able to more accurately predict the amount of revenue to be garnered from purchases of hardware or software.
But it won't be as simple as dropping off an order. Suppliers selected for each domain will be responsible for "the integration, testing, support and delivery of the complete end-to-end solution for the equipment or software in the domain that they have been awarded."
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