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Submitted by Tamasha on April 12, 2008
Category: Business
Words: 1077 | Pages: 5
Views: 646
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Environmental Analysis
Tamasha Glenn
University of Phoenix
MBA 501
The FCC approved a merger between AT&T, Bellsouth, and Cingular Wireless to form one phone company called The New AT&T. The purpose of this merger is to create a single communications company that is able to provide a more technologically advanced cost effective service to customers. The results of this merger will be dramatic change not only for consumers, but also company employees. There will be skeptics who are not accepting of the merger and think that the decision made by the companies will cause a monopoly on the communications industry. In response to the negative feedback, AT&T has said, “the merger would likely result in cost savings and other efficiencies that should benefit consumers” (att.com). This paper will show and environmental analysis on the telecommunications industry with a focus on landline telephone service with AT&T.
“The Bell system was broken up in 1984 by an agreement between the former AT&T and the U.S. Department of Justice, in which AT&T agreed to divest itself of its local telephone operations but retain its long distance, R&D and manufacturing arms. Out of the divestiture were born SBC Communications, Inc (formerly known as Southwestern Bell Corp.) and Bellsouth Corporation” (att.com). After this break up the company sustained much success in their services and continued to offer the most advanced technology in their services for their customers. “AT&T has led the industry in the development of DSL (digital subscriber line) and other broadband internet and delivery systems…” (att.com). Bellsouth has continued to value the reliability of their customers and dependability of their customers and their employees. When the merger completed in December 2007 the decision was made that in order to keep up with technology and within their budget, there will be layoffs of some employees. AT&T plans to layoff...
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