Erik Peterson Case

Topics: Cellular network, Mobile phone, Cell site Pages: 1 (1653 words) Published: September 22, 2012
Section 1 ­ Group 11 Eric Peterson Case

I. BACKGROUND: CelluComm and GMCT and the Industry AT&T’s Bell Laboratories cellular telephone networking innovation had enabled several cellular network operators to get licenses from the FCC to operate in separate license territories right about the same time AT&T was broken up in early 1980s. These operators were either companies like Cellular Communication Services, Inc. (CelluComm) or small entrepreneurs who had won license territories through the lottery system. CelluComm’s  president  and  founder  Ric  Jenkins  was  known  for  being  an  aggressive businessman  who  had  extended  it  to  a  200  million  dollar  enterprise  ranking  in  the  top  20  of  the industry.  Key  to  CelluComm’s  success  was  winning  some  metropolitan  areas  early  and  acquiring licenses  from  small  entrepreneurs.  Green  Mountain  Cellular  Telephone  Company  (GMCT)  was  a subsidiary  of  CelluComm  in  New  Hampshire  and  Vermont.  GMCT  was  a  pre­operating  system, meaning  it  was  still  in  construction  and  not  operational.  Without  major  problems,  GMCT  was scheduled  to  be  operational  in  early  February.  GMCT  was  located  in  an  area  of  high  potential economic gains. II. Problems faced by CelluComm and GMCT 1. An unclear reporting organization and poor communication with management at the Los Angeles headquarters. When Peterson was first hired on, he was not sure who he would be reporting to; he also found himself clashing with the wishes of headquarters regarding the salaries of his employees, termination of employment, and indecision with regard to technological decisions pertaining to the pre­operating systems. This in turn led to pay cuts and tension with his employees and multiple missed deadlines. 2. Existing employee dynamics, politics and cultural differences among his GMCT team; this included a lack of respect for one another, poor communication, and personal pride....
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