AT&T has confirmed plans to merge its wireless and business divisions, and will promote mobile chief Ralph de la Vega to head up the combined unit.

In an emailed statement, the U.S. telco said it has been integrating its wireless and wireline functions for a number of years, including its network, technology and customer care operations. Now it is integrating the marketing and distribution teams from AT&T Business Solutions into AT&T Mobility to create its Mobile & Business Solutions division.

"Integrating Business Solutions into Mobility is a great fit, because mobility is how businesses do business," said AT&T. "Business-related customers represent more than 50% of our mobile revenues and it's growing. This new group will focus on delivering integrated solutions for business customers that are first and foremost mobile, and also secure, reliable, ultra-fast and effortless."

Ralph de la Vega, who has served as chief executive of AT&T Mobility since 2007, has been named CEO of Mobile & Business Solutions. Glenn Lurie, president of AT&T's emerging devices, resale, and partnerships division, has been promoted to CEO of AT&T Mobility and will report to de la Vega.

According to Bloomberg, Andy Geisse, CEO of AT&T Business Solutions – and a 35-year veteran of the company – is retiring.