Creative destruction at AT&T

How does the creative destruction process work in the United States? Simply read GigaOM.com interview with new AT&T Inc (NYSE: T) CEO Randall Stephenson. After reading this interview, one can see how a new upstart can emerge and take control of an industry once dominated by a much larger competitor.

"It feels great and humbling all at once. Ed Whitacre changed the company, he changed the industry, and he revitalized an iconic American brand. That's a hard act to follow. But he left this company in great shape and that's very exciting to me and everyone here," said Stephenson.

One could see how employees moved up the corporate ladder at AT&T -- be very kind to the boss.

Malik goes on to ask another lay-up question, which was followed by a another rote answer from Stephenson: AT&T is a fearsome company now, with a weight of its legacy. Any first day jitters?

"Fearsome is the wrong word. The new AT&T is a 6-month-old company with a 130-year legacy of innovation and reliability behind us. When we closed the BellSouth deal in December, we finally put all the major pieces together."

Stephenson's answers can make one's stomach turn. Om Malik is one bright guy and simply allowing Stephenson to dictate the terms of how the interview was held says it all. It appears the interview was completed via email exchanges with Stephenson's answer being sanitized by a PR person. There is not too much creativity from AT&T's new head.

AT&T will be around for a while. And determining from the supply and demand balance for bandwidth, AT&T will be a good stock to own the next five years. But if this is the talent that AT&T attracts, do not expect this stock to be a good ten- to twenty-year performer. The creative destructive process in the U.S. will eat companies like this up.