CNET también está disponible en español.

Ir a español

Don't show this again

Mobile

Prodigy uproots execs, joins SBC in Texas

Prodigy Communications is going to Texas, moving its headquarters to the Lone Star State to be closer to new partner SBC Communications.

Prodigy Communications is going to Texas, moving its headquarters to the Lone Star State to be closer to new partner SBC Communications.

The Internet service provider also said it would uproot most of its top management staff, replacing people with former SBC executives.

The moves indicate just how much the service provider is relying on its partnership with SBC to revive its flagging fortunes. The Texas-based local phone giant has agreed to transfer the bulk of its consumer and small-business dial-up and high-speed Internet customers to Prodigy, making the ISP its customers' default service provider in the future.

That means Prodigy gets about 703,000 new customers, as well as first crack at most new high-speed Net customers in SBC's 13-state service area--a welcome shot in the arm for a service provider that has lost its once-dominant position in the Net provider business.

But today's moves show just how much the company is giving up for this privilege.

Prodigy will move about 200 employees to Austin, Texas, by early next year and about 350 by the end of 2001. That's where SBC maintains its research labs, organizations that will work with Prodigy's technical staff as part of the partnership agreement.

Most of Prodigy's upper management staff is also giving ground to SBC faces. CEO Samer F. Salameh will be replaced by Charles Roesslein, former SBC senior vice president, who will take the role of chief executive and president. Salameh will retain his position as chairman of the board, however.

Roesslein also replaces current Prodigy president and chief operating officer David Trachtenberg along with new COO Gregory Williams. Williams was a vice president in SBC's technology labs' wireless division.

Dan Iannotti, former counsel to SBC Directory Operations, will take the role of Prodigy's general counsel, vice president and secretary.