External and Internal Environment of at&T

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External Environment

Driving Forces
Technology
There is currently a variety of wireless networking capabilities that are emerging, developing, and integrating. The future of these technologies within the telecommunication industry will create better, higher-speed, and longer-distance capabilities. There are currently three providers for the digital wireless mobile phones service that create the networks via satellite. Global Service for Mobile Communications (GSM) has internationally appeal but is the network that Cingular and T-Mobile use for their service. Code Division Multiple Access (CDMA), have better coverage in the United States and are mainly utilized by Sprint and Verizon Wireless. The newest trends plan to integrate their technologies in the cell phone industry. Voice over Internet Protocol (VoIP) allows you to make telephone calls using a computer network, or a data network like the Internet. VoIP converts the voice signal from your telephone into a digital signal that travels over the internet then converts it back at the other end so you can speak to anyone with a regular phone number With all these emerging and current wireless systems in place, the wireless phone companies are panicking in preparation for a major shift in the cell phone industry. They are worried their customers may start using VoIP services like Skype, as Wi-Fi-enabled phones become more common and are lining up behind Unlicensed Mobile Access (UMA). UMA would allow calls to move seamlessly from the GSM cellular network to Wi-Fi networks. Most important thing is, it would let the operators retain control over the call and charge the customer for the minutes used (About us. AT&T Inc., 2012). But, with Skype and some other VoIP services, customers would be able to call for free once their phone is connected to a Wi-Fi network. Some U.S. cities have already proposed the idea that there should be free citywide Wi-Fi services, which could mean billions in lost revenue for the telecommunication industry. Mergers

AT&T and Cingular merged in 2004. Mergers negatively impact customer attitudes and perceptions with their wireless service in the short term, creating a sense of confusion and uncertainty. Yet carriers not involved in mergers also experienced some decline in overall satisfaction, with the gap between customer expectations and actual service experience widening. Evidence of this can be seen in the 5% increase of intent to switch carriers in the coming year, which was a reverse trend from the past two years, where future switching intent was stable. Market Growth

Although cell phone markets are relatively mature in the U.S. and in major developed nations everywhere, the number of subscribers nonetheless continues to grow in these countries. In the U.S., new subscribers tend to be those on lower-cost plans and children. Already, 40% of 12- to 14-year-old Americans carry cell phones; the rest of them will be soon to follow. Meanwhile, $1 billion cell phone subscribers are expected to join the craze within less developed nations worldwide. The largest nations include Sweden, the U.K, and the Netherlands followed by China and India. Security Issues

Security issues such as eavesdropping on Bluetooth conversations, hacking into Wi-Fi networks and viruses spread among cell phones will require more attention and investment from the technology and telecommunications sectors. The estimate is that the global market for mobile phone security software will reach $2 billion by 2013. New Service Provider

There is always the potential for a newcomer to join the crowd to threaten the current providers by combining the most current technologies, with faster service, and lower prices. Pre-paid phones could become more prevalent with the right service provider that can cater to the “pay-as-you-go” customers. The collaboration of Wi-Fi with the potential spread of longer-range WiMAX, and the eager adoption of VoIP will...
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