A new vitality of innovation coming with technological advancements penetrated the antique and lethargic organizational structure of the “old” AT&T due to the breakup of 1984, which resulted in the best outcome for all parties involved. Society realized an improvement to the products offered and the service of a truly competitive environment. AT&T has decoupled the organization from the environment, minimized its dependence on critical resources, conformed to shifting consumer demands, and, most importantly, has asserted itself in segregating markets. Market signals demonstrate the fact that AT&T’s new divisional structure applies pressure on competitors to adapt (Beekun & Glick, 2001). With the application of contingency theory’s principles, AT&T has successfully reinvented its business repeatedly by reorganizing its structure and setting a new strategic vision.