AT&T's new management continues to fill in its executive ranks and reorganize its operating hierarchy.

Last week the company hired new EVP-operations Kevin Casey ? another former Continental Cablevision executive ? and realigned the reporting structure of the company. CEO Bill Schleyer, COO Ron Cooper and CTO David Fellows were all Continental senior executives before the company was sold to US West several years ago.

Schleyer did away with the Broadband East and West divisional structures in favor of what he characterized in a company memo as a more streamlined reporting structure. Jim Mazur, president-Broadband East, announced he's leaving the company effective Nov. 30, following Teresa Elder, president-Broadband West, who resigned last month.

Casey will oversee the company's operations in Florida, Portland, Ore., Seattle, Dallas and Atlanta. He'll report to Cooper. A search is underway for another EVP-operations who will oversee the company's operations in the Rocky Mountain region, Salt Lake City, central California, Pittsburgh, Los Angeles, Denver and the Midwest region, according to a source close to the company.

Also reporting directly to Cooper are Joyce Gab-Kneeland, who runs AT&T's Chicago operations; David Grain, who oversees the company's Boston properties; and Don Schena, in charge of AT&T's Bay Area systems.

Cooper will concentrate on the day-to-day aspects of running the company, while Schleyer will develop and manage overall company strategy. Schleyer will focus on strengthening and developing external relationships and partnerships, as well as charting the company's strategic directions, a source close to the company says.

Some analysts questioned last week whether the operational rearrangements might indicate that AT&T is leaning toward keeping the broadband division rather than selling it off. However, the company signed a confidentiality agreement with AOL Time Warner last week signaling to other analysts and observers that the AT&T Corp. board remains committed to examining all of its options.

Regardless of whether AT&T ends up keeping AT&T Broadband or selling it, most analysts are pleased with the moves at the cable division.

?First and foremost, I think they want the company to run better, and that is what Bill Schleyer and his team have been brought in to do,? says Yankee Group analyst Michael Goodman. ?I think [AT&T CEO] Michael Armstrong has a number in his head of what the broadband unit is worth, and I don't think anyone's come close to that number yet. Regardless of what the board ultimately wants, they want the company to perform and I think this team can make that happen.?

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