Instability in the Telecommunications Industry
Currently the Telecommunications industry is in a state of flux. The industry is reporting record growth rates but at the same time is seeing diminishing returns. Subsequently stock prices and the value of these companies are falling. Focusing on two industry leaders in the US are AT&T Wireless (AWE) and Verizon (VZ). The number of cellular subscribers in 1997 was 42.8 Million and in 2000 that number went to 66.4 Million. That works out to a 55% growth in usage. Over time it took 15 years to get to 42.8 Million subscribers, but it took only 3 years to gain 23.6 Million subscribers for a total of 66.4 Million. The industry has seen major growth over the past 4 years. Some reasons for this change are the changes in cellular technology for the past 20 years Analog signals have been in use but in the past 5 years Digital technology has been introduced. Currently both cellular systems are in use but new subscribers are leaning towards the Digital signal systems and phones, due to the clarity in connection, advanced features, and expanded service. As well as older customers are switching over to the new digital system and phones.
Some of the issues that exist within the industry. With the change in cellular systems and the proliferation of new cellular providers the customer is receiving many benefits such as falling prices from the diverse competitive market. The cost for cellular plans are constantly falling but at the same time the amount of Minutes offered by the plan is increasing. Recently an advertisement offered 3000 minutes for $35.00 per month, no long distance, and the cellular phone handset was free. The cost of such a plan works out to about $0.01 per minute. So as technology advances and prices continue to fall the consumer uses the cellular phone to make all calls both local and long distance, subsequently the long distance carriers are losing market share as consumers change their usage habits. At the same time the manufacturers of cellular handsets such as Ericsson and Motorola are forced to produce more products, and new products for less money. As an example the Motorola StarTac sold for $250 6 months ago, now that same product sells for $70, that is a 72% reduction in price over 6 months.
This is one of AT&T’s strengths because they are able to target a wide range of segments. They have a variety of different products and services that can be tailored to each segment’s usage demand that sets them apart from their competitors. This is an opportunity for the company because they are providing lower costs to customers for their voice and data services by with the bandwidth. It gives the company growth opportunities due to the fact that they are covering both locations as well as mobile devices. The company has started to take measures to grab the opportunity by merging wireline customers with their 21-state serviced IP areas.
Imagine if nobody had a cellphone in today’s world. That’s why today everybody has some form of a cellphone contract with the four major companies (AT&T, Sprint, Verizon or T-Mobile) or a less know cellphone provider. AT&T and Verizon Wireless provide more than the other two major companies.
Verizon Communications Inc. is one of the leaders in providing communication services around the world. Its primary offerings are wireless, wireline, and broadband communication resources to meet residential, business, and government needs. As a leader in its industry, how can Verizon continue to grow its business? What strengths, weaknesses, opportunities and threats impact the success of Verizon now and in the future?
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
The telecommunications industry is of vital importance to the development of the information-based economy. AT&T need to supply access to cost efficient, timely and innovative telecommunications services.
Background One. Tel was launched by Jodee Rich and Brad Keeling in 1995 (Cook, 2001). At first, it looked to get the advantages from deregulation of the telecommunication industry by reselling other network’s capacity and making money through stock market speculation. Rich and Keeling tried to increase the company’s shares rather than profit the company (Cook, 2001). Initially, One.
Telecommunications gained mainstream attention in the early 90’s; however the initial key market was business men and women, who used their phones whilst being on the move and so allowing them to communicate with their companies with ease. Though in the modern era, telecommunication went through segmentation in the market trends, and now in this day and age it would be difficult to find someone who does not own some form of mobile technology. Many phone providers battle to provide the best service for their customers (Figure 1).
In conclusion, current trends and significant events concerning T-Mobile were examined. A hard look was given to the economy, demographics, technology, political and legal issues, and social characteristics. T-Mobile is strong across the board, with surprising statistics backing up a variety of topics. The economy is strong, the demographics are not far-fetched, technology is improving, there’s no huge political or legal scandal, and T-Mobile is socially strong.
There is a slowdown in sales of mobile handsets, in some markets like the UK, as the mature part of the product lifecycle is reached. Customers are exposed to a barrage of different images and messages by mobile phone companies, as the competition gets tougher. Vodafone appeals to new customers and aims to keep its existing ones by emphasising the uniqueness of the brand.
The intent of this paper is to perform an analysis of the cable industry's external environment. The first sections of the document will discuss environmental scanning and define the telecommunication niche that is currently occupied by cable operators such as Comcast. The next section will identify the macroeconomic variables that currently impact cable operators and will compare two variables to two corresponding industry variables. The final section of the paper will identify some of the challenges and opportunities facing the industry. An external analysis of the industry will provide a clear picture of the environment as well as any opportunities and threats faced by Comcast. By understanding the environment, opportunities and threats a company has the ability to create strategies to support its business goals. The primary process by which Comcast will gain an understanding of its external environment is environmental scanning.
The changes in the technological can influence many part of societies. When the AT&T Company introduce their new product and services which is wireless and wire line technology will effects occur primarily through the new products, processes, and materials. Thus, changes in technological also often can achieve higher market share and earn higher return because, newly emerging technology from AT&T could derive competitive advantages. For example, internet today becoming more remarkable capability to provide information easily, quickly, effectively, and also can create more value for customer in the future and to anticipate future trends.
Market failure has become an increasingly important topic for students. In simple terms, market failure occurs when markets do not bring about economic efficiency. There is a clear economic case for government intervention in markets where some form of market failure is taking place. Government can justify this by saying that intervention is in the public interest.
switching behaviour. Literature reveals about the factors of switching cost, better customer care services, networking coverage, advertising , etc for switching behaviour of customers. The researchers identify the problem of industry that if one firm gains then other must be losing a customer. Number of network providers are increasing calling for an intense competition. Empowerment of technology has led to growth of mobile industry more economical.
The nature of research instruments, the sampling plan and the type of data the research design constitutes the blueprint for the collection, the measurement and analysis of data. It aids the researcher in the allocation of his limited resources by posing crucial choices.
Mauritius Telecom (MT) Ltd is the leading telecommunications operator and service provider in Mauritius. Incorporated in 1988 as Mauritius Telecommunication Services, it acquired the assets of Overseas Telecommunications Services in 1992 and was renamed Mauritius Telecom. It has since enjoyed a phenomenal rate of development and it is now one of the top companies in the country.