At&T Business Strategy

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  • Topic: 3G, AT&T Mobility, GSM
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AT&T Wireless is the leading wireless telecommunications provider in the US market. The US wireless market constitutes over 243M wireless subscribers. This represents a market penetration of 81%. The wireless market sells mobility of voice and data (video-media, download content and internet access). The wireless market is distributed between the following major competitors and distinguishing technology. AT&T-TDMA,GSM, UMTS/HSPDA

Verizon Wireless – CDMA, EV-DO
Sprint-Nextel- CDMA, EV-DO
T-mobile - GSM, UMTS

Upon the acquisition and merger of legacy AT&T Wireless by Cingular Wireless and the solidification of SBC, BellSouth and Cingular Wireless, the New AT&T mobility business unit now leads in the current market share narrowly over Verizon Wireless.

Figure 1

AT&T 27.1%, Verizon 26.3%, Sprint-Nextel 23.6%, Other 11.9%, T-mobile 11.1%. Source Forrester Research December 2007.

The Master Strategy for AT&T wireless is to be the only telecom provider their customer would ever need by connecting its customers anywhere – anyway. COST- AT&T is adequate in this regard. It is positioned to offer competitive pricing to the numerous services it offers. Rollover Minutes, Family Unity Plan DIFFERENTIATION- AT&T’s exclusive agreement to market and sell the iPhone with Apple Corporation has differentiated itself from its competitors. Utilization of its vast spectrum to offer video conferencing service (video share). NICHE- AT&T has not engaged in niche market.

The following are the supporting Strategies:
Geographic Coverage- AT&T is positioning itself to be the leader in wireless coverage, identified by the move in the Global markets. Mix Intensity- AT&T is a leader in wireless products and services by offer voice PTT, voice –IP, video share, HSPDA. Channel Exposure- AT&T is adequate in its point of sales. They intend to match most competitors in using Radio Shack, BEST Buy, Walmart, Mall locations, high visible real estate traffic. Service/Satisfaction- AT&T has settle to be adequate in Customer Service by changing is “Customer Rules” to just “Earning Industry Leading Retention”. Although they have made tremendous strides in reducing their churn from 2.1% to 1.6% in two years validating their commitment to provide a better system to their customers after the merger. Channel Control- adequate

Switching Costs- AT&T allows number portability and maintains the industry practice of 2-year contract commitments. They are adequate in this regard. Branding/Promotion – AT&T is leading to be the only telecommunication company their customers need by connecting people better than anyone else.

The merger between Cingular Wireless and AT&T Wireless created the largest footprint of any wireless carrier. This merger also established the largest spectrum holding of any wireless carrier of 59 Mhz . Spectrum for wireless carriers is a commodity to evolve technology and support capacity. With this amount of spectrum AT&T can leverage a significant amount towards is data services in Enhanced GPRS (EDGE) and its High-Speed Downlink Packet Access (HSDPA). The EDGE network is deployed throughout is market and the HSDPA technology is 30% deployed throughout its network, while all NFL markets are fully deployed. Further efficiencies’ will be realized when the legacy TDMA spectrum is accentuated towards the UMTS system, and GPRS data slots are converted to EDGE data slots.

AT&T will migrate towards operational excellence as its legacy TDMA equipment, billings systems and transport infrastructure are dissolved. The customers currently on this system are mostly businesses that will upgrade to the more efficient data solutions of EDGE or HSPDA. Overall this move will support increases in voice/data ARPU AT&T has developed an MSOC (Management System Operational Control) process to ensure efficient reaction...
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