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At&Amp;T Case Analysis

Submitted by m6delia on May 9, 2006

Category: Business
Words: 2946 | Pages: 12
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Introduction

AT&T was started over 130 years ago in 1875. It started out when Alexander Graham Bell began work on the telephone. Initially it just made telephones and licensed to companies to
• Many changes in the company structure
• 6,000 patents
• 7 Nobel prizes


Analysis

I. General Environment
A. Technology –Alexander Graham Bell invented the telephone and earned the patent in 1875. AT & T was incorporated in 1885 with objective of building and operating long distance network. AT & T was the telecommunication leader until the late 90s. Here is the list of AT & T technological movement: 1925 virtually monopoly on local telephone service, 1926 begins telephone service via two-way radio, 1947 transistor invented at Bell Labs, the first microwave relay system, 1962 launches its first satellite, 1977 installs the first fiber optic cable, 1992 starts AT & T Wireless after acquires McCaw Cellular Communications, 1996 launches AT & T Internet service, 1999 forms AT & T broadband after acquires cable company TCI. Technology is the driver of the telecommunication industry. Without highly advanced technology and services, there would be no product to sell.

B. Demographic trends – For a long time, AT & T was virtually monopoly on local and long distance service. After the antitrust threats in 1913, AT & T allows competitors to interconnect with the Bell System. It does not stop AT & T’s rapid growth. The penetration of telephone service into American household increased from 50% in 1945 to 90% in 1969. Competition became established in the general long distance service by the mid-1970s when FCC signaled its interest in more competition and allowed competitors to use some of the Bell Lab’s technology. AT & T’s long distance market share fell from over 90% in 1984 to 50% in 1996. By the late 90s, AT & T realized its technology and service areas are lagging, it starts series...

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