Nationwide, more than 9 million homes in 43 markets have access to U-verse, but only about 379,000 have signed up, executives said during AT&T's first-quarter earnings conference call last week.The company wants to have 1 million customers by the end of 2008.
Getting customers to buy U-verse hasn't been an issue, said Rhett Hutchison, AT&T's U-verse sales director. "It's making them aware of it."
Speece said the timid campaign could be ramped up later.
"From a brand standpoint —-if they launch this thing, and it fails, the brand is effectively dead," Speece said. "So my guess is, AT&T is wisely keeping the brand behind the curtain until they get it ready for prime time, then we're going to see the billboards, the [Web site] pop-ups."
What's more, one TV ad has caused AT&T some trouble. The company ran a spot in Chicago that featured a comic impersonation of Harry Caray, the legendary baseball announcer. Caray's widow, Dutchie, blasted the company in a TV interview.
"Some people loved it, and some people didn't love it," said Roger Entner, senior vice president for the communications sector of IAG Research. "But it shows that they spent a lot of effort into the advertising into the local community where they launched U-verse."
U-verse is delivered to homes through digital lines that are similar to high-speed Internet lines. Customers can receive 42 channels in high-definition and the ability to record and store 120 hours of TV programs.
Other features include games and an on-screen phone directory.
The service costs between $44 to $154 a month, depending on the package.
Installation takes about five hours. This is after AT&T technicians install equipment boxes around the neighborhood and make sure the homes are wired to receive streaming video.
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