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Submitted by sarah17 on March 13, 2005
Category: Business
Words: 1064 | Pages: 5
Views: 460
Popularity Rank: 19,862
Average Member Grade: N/A (Add a Comment / Grade this Paper)
"Raising the Bar"
Cingular, one of the nation's largest wireless phone providers recently announced its forty-one billion dollar purchase of AT&T wireless. The deal took place on October 26, 2004. The merge of these two major corporations opened the doors for change.
AT&T encountered some difficulties within the past year that brought up the question to sell the company. AT&T struggled to add new subscribers because of a glitch in their new software system. The system was designed to improve customer service but instead it caused more problems for the company as well as its customers. The company also faced problems losing more customers than they were gaining due to new federal rules and regulations that took place in November of 2003. These rules allowed phone users to change service providers without losing their current phone numbers. Cingular, at the same time was looking to cut costs, fill cellular service gaps and expand their coverage area. Since AT&T faced numerous problems and Cingular was on the lookout to expand, the merge was seen as beneficial to both companies.
The merge brought about many advantages. One of the major advantages for the merge was not only was Cingular now the largest wireless company in the industry having the most coverage area, but it removed one of the major competitors in the wireless industry. This removal would stabilize the industry so that carriers could more easily invest in new services. Another advantage for purchasing a company like AT&T was that both companies ran off of the same network technology making the integration of both companies easy. The merge more than doubled the customer base for Cingular. Going from a mere 23.4 million customers to 46.7 million customers. The management at Cingular would have a lot of work on their hands. To deal with these changes Cingular management will have to lay off employees from both companies. Many positions are a duplicate of what Cingular all ready has....
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