AT&T’s CEO of Communications, John Donovan, to retire in October

John Donovan, CEO of ATT Communications, announced today his plans to retire effective October 1, 2019. Donovan has for the past two years led ATT’s largest business unit, which services 100 million mobile, broadband and pay-TV customers in the U.S., as well as millions of business customers, including nearly all the Fortune 1000.

The news comes amid several big changes in that business unit itself, and more in the broader telecom industry.

For starters, ATT had just rebranded its over-the-top streaming service DIRECTV NOW to ATT TV NOW, and  just last week rolled out a brand-new TV service, ATT TV, in 10 test markets.

While DIRECTV NOW (aka ATT TV NOW) is meant to compete with other over-the-top streaming services like Dish’s Sling TV, Hulu with Live TV, YouTube TV and others, the new ATT TV is a more conventional — though still “over-the-top” — option that can work with any broadband connection.

However, it locks in customers to two-year contracts, requires a set-top box and has packages that range from $60-$80 per month, much like a traditional TV subscription.

Elsewhere at ATT, its WarnerMedia division is working a streaming service of its own, HBO Max, which is meant to battle more directly with premium offerings, like Disney+ or Apple TV+, for example. ATT also operates a low-cost streaming service, Watch TV.

And the company continues to offer pay-TV offerings like DIRECTV (satellite service) and U-verse (cable).

It seems ATT is due to consolidate these efforts at some point, and Donovan’s departure could signal some changes on that front, perhaps. Plus, as The WSJ reported, Donovan and WarnerMedia head John Stankey had a strained relationship at times. That could because HBO Max will end up competing with other ATT offerings and services, the report suggested.

In addition to its various streaming ambitions, ATT is also starting to roll out 5G, a move Donovan spearheaded. The company is also preparing for competition from new players, including what arises from a T-Mobile/Sprint merger, and from Dish’s plans to enter the wireless market.

Donovan had been CEO of ATT Communications for two years, after having joined the company as CTO in 2008. Prior to his CEO role starting in July 2017, he had been promoted to ATT’s chief strategy officer and group president — ATT Technology and Operations.

He previously worked at Verisign, Deloitte Consulting and InCode Telecom Group.

Donovan, 58, was nearing the company’s retirement age of 60, but his departure was still unexpected, The WSJ also said.

“It’s been my honor to lead ATT Communications during a period of unprecedented innovation and investment in new technology that is revolutionizing how people connect with their worlds,” said John Donovan, in a statement. “All that we’ve accomplished is a credit to the talented women and men of ATT, and their passion for serving our customers. I’m looking forward to the future – spending more time with my family and watching with pride as the ATT team continues to set the pace for the industry.”

“JD is a terrific leader and a tech visionary who helped drive ATT’s leadership in connecting customers, from our 5G, fiber and FirstNet buildouts, to new products and platforms, to setting the global standard for software-defined networks,” added Randall Stephenson, ATT’s chairman and CEO. “He led the way in encouraging his team to continuously innovate and develop their skill sets for the future. We greatly appreciate his many contributions to our company’s success and his untiring dedication to serving customers and making our communities better. JD is a good friend, and I wish him and his family all the best in the years ahead.”

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