Cell Phone Industry Analysis

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Table of Contents

1.Introduction to the Cellular Service Provider Industry2
2.2.Sprint Nextel3
3.The Top 4 Competitors in the Cellular Service Provider Industry3 3.1.AT&T3
3.2.Sprint Nextel3
4.Porter’s 5 ForcesError! Bookmark not defined.
4.1.Internal RivalryError! Bookmark not defined.
4.2.Threat of EntryError! Bookmark not defined.
4.3.Substitutes and ComplementsError! Bookmark not defined. 4.4.Bargaining Power of SuppliersError! Bookmark not defined. 4.5.Bargaining Power of BuyersError! Bookmark not defined. 4.6.Overall Market AttractivenessError! Bookmark not defined. 5.Value Net AnalysisError! Bookmark not defined.

6.Financial AnalysisError! Bookmark not defined.
6.1.AT&TError! Bookmark not defined.
6.2.SprintError! Bookmark not defined.
6.3.T-MobileError! Bookmark not defined.
6.4.VerizonError! Bookmark not defined.
7.2.New Entrants and Providers3
7.3.Cell Phones – Compliments Change Over Time3
7.4.New Technologies / Applications / Features3
7.5.Government Influence3
7.6.New users3
7.7.The Future is Bright3

1.Introduction to the Cellular Service Provider Industry

A cell phone would be nothing with out a cellular service provider. In order for you and I to have teleconferences, talk with family and friends, or hold any type of conversation while on the go without being tied down by wires cellular service providers offer transmission services to us through radio frequency signals rather than through end-to-end wire communication like land lines. These services can sometimes be complemented with data, messaging, and GPS packages and even more. Due to our constant need to be connected with each other cellular service providers are continuing to grow in the domestic market.

For an industry that started less than 30 years ago it had revenues of about $138 billion in 2007 and currently has an estimate of 238.2 million subscribers. Wireless services were based on cellular technology in the beginning. Cellular technology divided geographic regions in cells and sent analog signals to customers using a wave through radio transmitters. Now digital technology is used to provide wireless customers with more efficient wireless service. Digital technology uses the same wave as analog technology except it divides the wave and converts it into data then sends it to the customer. Digital technology provides a more secure call and a decreased chance of dropped calls.

AT&T is one of the pioneers of cellular service providers that have gone through both the digital and analog stages of wireless technology but as time passed they were joined by three other major players in this industry: Verizon, Sprint, and T-Mobile. It is obvious these companies play an integral part in our lives. Communication is one key component that keeps us informed as business men and women and without it we would be stranded.


Four Strategic Factor Analysis Tables are listed below; one for each of the four major domestic cellular service providers. AT&T, Sprint Nextel, T-Mobile, and Verizon are all faced with internal and external factors that affect their business. They do have one thing in common, the threat of economic downturn. In order to be prepared to face this best, they should use their strengths and maintain minimum capital for economic downturn contingencies.

Other strategies these carriers can create by combining their strengths, weaknesses, opportunities, and threats include T-Mobile introducing new products and services such as the Linux Razor to promote innovations and the use of more advanced technology. AT&T can invest in different ways to improve their customer service rating through more intensive problem solving training for their service representatives. Sprint Nextel could use a short term...
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