The Unethical Business in the Telecommunication Industry

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Executive summary
The report will have a close look on unethical business about telecommunication industry. We know that a lot of times the rights of consumers are not protected. Because of the much unethical behaviour in the industry, consumers often faced the choices between interest and social morality. In many cases this report has discovered that the unethical behaviours. The essay will also Analysis of each company and provides recommendations for investors.

This report will look at:
• The unethical behaviour about WorldCom accounting scandal • The Monopolistic competition about china telecom
• The overcharging behaviour of AT&T
• Recommendations for telecommunication industry
• Conclusion

WorldCom, The America’s second-biggest long distance phone company. From 1999 to 2002, an internal audit had reported that $3.3 billion in profits were improperly recorded on its books. That is on top of the $3.8 billion in expenses. And company said it had improperly reported as capital investments. WorldCom now says it must issue revised financial statements from full year (four quarters) of 2001 and the first quarter of 2002. (Tran, 9 August 2002) After the bankruptcy of company, investors and consumers feel staggered and scare. Because it was the large company, the public think it was been trusted by the public. But the company has abused the public trust through the falsification of financial statements preparation and to deceive the public and lie about the benefits of its products in order to get more revenue. (Arnold, 22 July, 2002)

China Telecom
By the end of 2010, the population of Internet users in china has been reach to 23.3 present of whole world and about 55.3 percent of Internet users in Asia. However, china's rate of Internet is the slowest of the world, the average rate of global broadband access is 5.6Mbps, but in china, the average rate of downlink is only 1.8Mbps (ranked 71st in the world). We noticed that the broadband market in China is lack of competition, Interesting, the average cost per Mbps is 3 to 4 times the price of UK, US and other developed countries. (Hille, November 14, 2011) The price supervision and anti-monopoly bureau at china's National Development and Reform Commission surprised observers on November 9, 2011 by announcing it was investigating China Telecom and another pharmaceutical company, the state-owned fixed-line carries, for allegedly abusing its dominant market position to limit the competitor entry the broadband business. AT&T

June, 2010. AT&T will stop to let the customers signing its unlimited data plans and use new tiered pricing system. (Ettinger, June 2, 2010 ) AT&T listed three categories of plans:
Data Plus- $15 per month for 200 MB of data. If the customer is exceeding 200 MB of monthly billing cycles, they can have additional 200 MB of data for $15. According to AT&T's Statistics, 65% of mobile phone users' monthly data flow is less than 200 MB •Data Pro- customers spend $25 per month; they can get 2 GB data. If customers exceed 2 GB in this month, they can receive 1 GB data/$10. Currently, 98% of people use less than 2 GB per month in their statistics. •The AT&T customers can pay additional $20 per month to let their mobile phones as a modem to offer the broadband for their computes. When the company could not found the new profit growth point, they selected provide the products which harm the interests of consumers to balance the income and expenditure of enterprises, rather than through innovation to create new revenue.

Accounting scandal
Considered the WorldCom case, Association of Chartered Certified Accountants (ACCA) Calls for global professional auditors maintain independent. They want to see the audit firm limit to provides additional services in order to make accounting fraud, In accordance with industry standards to appoint auditors and requested his independent position and not...
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