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AT&T Plans Advertising-Based Revenue Model

AT&T plans to push a new advertising model, using it as the cornerstone of new wireless services initiatives, according to an interview with chairman-CEO Edward Whitacre Jr. in today’s Wall Street Journal.

The plan includes selling advertising on cell phones, on AT&T television and on broadband internet services, and is expected to generate several billion dollars in advertising revenue per year, writes MediaPost. The move comes at a time when Sprint Nextel and Verizon are also pursuing the advertising marketplace, according to the article.

AT&T has already pulled together an ad sales team and has begun briefing Madison Ave. on its plans to develop new advertising services based on its U-verse package (a telephone, internet and TV combo aimed at its base of 58.7 million wireless and 67.5 million land-line phone customers).