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At&T Strategic Action Plan

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At&T Strategic Action Plan
AT&T

AT&T is a leader in telecommunication services, including cell phones, wireless, U-verse, digital TV, high speed internet, DSL, and home phone. AT&T currently employs over 280,000 people worldwide. AT&T is now ranked #7 on Fortune 500 list, where its main competitor, Verizon, is listed as #13. Headquartered in Dallas, Texas, AT&T Inc is the largest U.S. local and long distance phone service provider and second largest wireless service provider, with over 87.0 million wireless customers. AT&T was created in 2005 after SBC Communications acquired AT&T Corp.

The current emergence of AT&T traces its roots back to 1882 and the Southwestern Bell Telephone Company. Ameritech, Southwestern Bell, Pacific Telesis, and Bellsouth comprised the bulk of the SBC’s consumer base before the AT&T merger. The 1982 breakup of the previously vertically integrated AT&T led to the divestiture of local service companies, resulting in seven regional holding companies, or “Baby Bells.” The result of AT&T’s breakup was increased competition from the likes of Sprint and MCI. Two of the spun off regional holding companies, Bell Atlantic and Nynex, would later become Verizon, and US West would become Qwest.
AT&T operates across its main business segments: Wireless, Wireline, Advertising Solutions, and other. Its Wireless segment provides wireless voice communications services, including local wireless communications, long-distance, and roaming services with prepaid roaming agreements. This segment also supplies various accessories such as handsets, wirelessly enabled computers, and personal computer data cards. Its Wireline segment, which has previously been AT&T's core business, has invested heavily in AT&T "U-Verse", which offers high-speed internet, phone, and television services in one package. Its Wireline segment also offers voice services, which include local and long-distance, conference calling, caller ID, call waiting, voice mail services and more. The company’s



References: AT&T. (2010) AT&T: Rethink Possible. Retrieved November 12, 2010 from http://www.att.com/ Fortune 500. (2010). Retrieved November 12, 2010, from http://money.cnn.com/magazines/fortune/fortune500/2010/full_list/index.html Karthinkeyan, D. (2010, July 7). Analyst angle: bye-bye unlimited data plans-the drivers, threats and opportunites. Retrieved from http://www.rcrwireless.com/ARTICLE/20100707/opinion/100709981/analyst-angle-bye-bye-unlimited-data-plans-8211-the-drivers Parthasarthy, Raghavan. Fundamentals of strategic management. Boston, MA: Houghton Mifflin Company, 2007. Rupel, Matt. (2010, February 18) Frustrated Clients Tell AT&T to Raise the Bars. Retrieved November 12, 2010 from http://www.thesantaclara.com/home/ Sullivan, M. (2010, March 24) U.S. Wireless Carriers Take Different Routes Toward Fast 4G Service. About.com. Retrieved November 10, 2010 from http://pcworld.about.com/od/networking1/U-S-Wireless-Carriers-Take-Different-Routes-Toward-Fast-4G-Service.htm The Economist. (2010, June 10). The Future of AT&T. Retrieved November 13, 2010 from http://www.economist.com/ Yahoo! Finance (2010). AT&T Profile. Retrieved November 12, 2010 from http://finance.yahoo.com/

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    References: 1. 2. CRTC, “CRTC seeks views on the state of competition in the Canadian wireless sector,” news release, April 4, 2012. See especially: the biannual reports of the OECD (OECD Communications Outlook); Berkman Center for Internet and Society at Harvard University, Next Generation Connectivity: A review of broadband Internet transitions and policy from around the world, October 2009; Bank of America Merrill Lynch, Global Wireless Matrix 3Q11: Look beyond the macro storm, September 2011; SeaBoard Group, Long Term Evolutionary Challenge: Limiting Wireless Carrier Gluttony, February 2012. OECD, OECD Communications Outlook 2011, 2011, pp. 285-290, tables 7.9 to 7.14. These figures are from another OECD report published a few days earlier: OECD, International Mobile Data Roaming, May 2011. See also Terence Corcoran’s analysis, “Canada’s data roaming fees look pretty cheap,” Financial Post, June 9, 2011. Wall Communications, Price Comparisons of Wireline, Wireless and Internet Services in Canada and with Foreign Jurisdictions, April 2012. 4G Americas, Global 3G and 4G Deployment Status HSPA / HSPA+ / LTE, August 2012. “Data guzzlers: How the world will use the Internet in 2015,” The Economist, June 1, 2011. Cisco, Visual Networking Index Forecast Highlights, http://www.cisco.com/ web/solutions/sp/vni/vni_forecast_highlights/index.html#~Country. OECD, Fixed and wireless broadband subscriptions per 100 inhabitants, OECD Broadband Portal, December 2011. comScore, Canada Digital Future in Focus, 2012, p. 39. Lawrence Surtees and Steve Yang, Canadian Telecommunications Capex Budgets, IDC, August 2011, p. 50. Rita Trichur and Iain Marlow, “Canada’s newly competitive cellphone market at risk,” The Globe and Mail, February 11, 2012. John Morrissy, “Consumer savings at risk as new wireless players struggle,” Vancouver Sun, April 11, 2012. Rita Trichur and Iain Marlow, op. cit., endnote 12. John Morrissy, op. cit., endnote 13. In various articles, economists have emphasized the possible market distortions caused by the setting aside of spectrum for small players at auctions. See for example: Robert W. Crandall and Allan T. Ingraham, “The Adverse Economic Effects of Spectrum Set-Asides,” Canadian Journal of Law & Technology, Vol. 6 (2007), pp. 131-140. Rita Trichur, “Telecom firms under pressure to keep up with smartphone obsession,” The Globe and Mail, December 30, 2011. Advertising on mobile devices is growing rapidly in Canada. The value of this advertising, which was just $1.1 million in 2006, had risen to $52.1 million in 2010 and reached an estimated $82 million in 2011. Note also that online advertising in general now exceeds newspaper advertising. IAB Canada, Canadian Online Advertising Revenue Survey, 2010 Actual + 2011 Estimated, p. 4.…

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