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| Additionally, AT&T and other broadband network providers have been under scrutiny by the FCC for what may be preferential treatment to their own subscribers. For example, AT&T could offer video services at high speeds to subscribers, and make those of its competitors unavailable or slower<ref>[http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=496343&page=Stock:AT%26T_(T)&format=html&comments=0 "AT&T Takes on Google Over 'Terrifying' Internet Rules", Bloomberg, 10/21/09]</ref>. With strong support from the U.S. Congress, the FCC may regulate these networks to enforce net neutrality, a decision that could drive up consumer prices<ref>[http://consumerist.com/5385791/att-asks-employees-to-oppose-net-neutrality "AT&T Asks Employees to Deter Net Neutrality" The Consumerist, 10/20/2009]</ref>. | Additionally, AT&T and other broadband network providers have been under scrutiny by the FCC for what may be preferential treatment to their own subscribers. For example, AT&T could offer video services at high speeds to subscribers, and make those of its competitors unavailable or slower<ref>[http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=496343&page=Stock:AT%26T_(T)&format=html&comments=0 "AT&T Takes on Google Over 'Terrifying' Internet Rules", Bloomberg, 10/21/09]</ref>. With strong support from the U.S. Congress, the FCC may regulate these networks to enforce net neutrality, a decision that could drive up consumer prices<ref>[http://consumerist.com/5385791/att-asks-employees-to-oppose-net-neutrality "AT&T Asks Employees to Deter Net Neutrality" The Consumerist, 10/20/2009]</ref>. | ||
| - | ===High-Speed Internet and Video Investments=== | + | I was really confused, and this answered all my qeutsinos. |
| - | AT&T has made significant investments in developing high-speed internet and video offerings to compete with cable companies such as [[Time Warner Cable (TWC)|Time Warner Cable]] and [[Cablevision Systems (CVC)| Cablevision Systems]]. At the core of this drive is Project Lightspeed, AT&T’s initiative to provide broadband to 19 million households. As mentioned above, AT&T has decided to pursue the FTTN model, allowing it to build its network quicker and less expensively than some of its competitors. | + | |
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| - | Furthermore, AT&T is betting heavily on being able to provide high-quality video services to its customers. AT&T was involved in a bundling agreement with [[EchoStar Communications (DISH)|Echostar Communications]] to provide broadband and telephone services along with Echostar's satellite television. The laying of their own fiber optic wires puts the future of this relationship at risk. AT&T’s U-verse competes with [[Verizon Communications (VZ)|Verizon’s FiOS]] and [[Docsis 3.0]] which is provided by cable companies. | + | |
| === Government Investments in Telehealth=== | === Government Investments in Telehealth=== | ||
Revision as of 06:47, August 11, 2011
AT&T Inc. (NYSE:T) is a U.S. telecommunications services provider, and the second largest U.S. wireless carrier in the United States. AT&T provides telephone, Internet, and computer telephone services to over 95 million customers in 22 states in the U.S. AT&T operates across four segments: Wireless, Wireline, Advertising Solutions, and Other. In fiscal year 2010, AT&T recorded revenues of $124.3 billion and net income of $19.8 billion. AT&T continues to invest heavily to improve high-speed internet and video offerings as consumer demand for these services continues to rise. AT&T's increased investments is evident in its $4.4 billion initiative to build a fiber-optic network to offer IP-based video, broadband Internet, and VoIP services over a single line.
Finally! This is just what I was lokonig for.
Contents |
Key Trends and Forces
Regulatory Environment Exposure
AT&T Inc.’s businesses are subject to many levels of complex regulation and any significant changes could have a major impact on the company as a whole. In the 1990s, the FCC began implementing policies that encouraged competition for local telephone service providers, epitomized by the Telecom Act of 1996. The new rules imposed on the industry during this period stifled growth and had a negative impact on earnings for AT&T. Increased regulation or a break-up of the industry like what happened to AT&T in the mid-1980s would be very harmful to all wireless carriers as it would reduce margins considerably.
In 2009, both the FCC and DOJ were asked by Senator Herb Kohl of Wisconsin to investigate anti-competitive practices in the cell phone industry, given its dominance by four companies: AT&T, Sprint, T-Mobile USA, and Verizon Wireless[1]. According to the FCC, industry concentration, as measured by the Herfindahl-Hirschman Index, has increased 32% since 2003 primarily as a result of consolidation in the space[2].
Additionally, AT&T and other broadband network providers have been under scrutiny by the FCC for what may be preferential treatment to their own subscribers. For example, AT&T could offer video services at high speeds to subscribers, and make those of its competitors unavailable or slower[3]. With strong support from the U.S. Congress, the FCC may regulate these networks to enforce net neutrality, a decision that could drive up consumer prices[4].
I was really confused, and this answered all my qeutsinos.
Government Investments in Telehealth
In an effort to help lower costs and improve the quality of medical care, many telecommunication companies are partnering up with tech companies to spur their remote client monitoring businesses and take advantage of the $6 billion government spending in telehealth[5]. AT&T research scientists have embedded pressure sensors in the soles of "smart slippers" that detect if a patient's gait is unusual or offbeat, notifying a doctor via e-mail and potentially preventing injury or future costly medical care.
Acquisition of T-Mobile
On March 20, 2011, AT&T and Deutsche Telecom announced agreements to sell T-Mobile USA for a reported $39 billion USD. All parties involved are now actively engaged in working with the Department of Justice and the Federal Communications Commission to see this deal go through. Critics cite the monopolistic overtones of the merger, as it will propel AT&T into the number one telecommunications provider in the United States, ahead of Verizon. At the same time, industry observers see this deal as a stepping stone for AT&T to enter the 4G LTE (Long Term Evolution) market, where it hopes to catch up with competitors like Verizon and Sprint that have already launched such systems. This falls in line with the Obama administration's goals of helping connect every American to the digital age. However, it might take a year for the process to be completed, if at all.
Competitors
AT&T competes primarily with other telecommunications services companies, including Verizon Wireless, Sprint Nextel, Leap Wireless, and MetroPCS.
- Verizon Wireless: Verizon Wireless is a joint venture of Verizon Communications (VZ) and Vodafone Group (VOD), and has outpaced AT&T to become the leading wireless service provider in the U.S. AT&T benefited from the necessary divestitures when Verizon buyout of Alltel Corporation, in which it gained approximately 1.6 million subscribers primarily across rural properties
- Leap Wireless: Leap is a niche player in the telecommunications space, offering pre-paid, unlimited wireless plans, so it does not compete directly with AT&T Wireless. The company targets youth and minority markets, and its payment structure means customers avoid credit checks and contracts.
- Sprint Nextel: Through its Sprint, Nextel, Boost Mobile, Virgin Mobile and Assurance Wireless sub-brands, Sprint Nextel competes across both wireless and wireline with AT&T. Although in recent years Spring has been hemorrhaging customers, it has invested heavily to launch the first 4G network and retain customers, and has shifted away from the post-paid segment where AT&T and Verizon Wireless dominate to focus on the pre-paid subscriber niche.
- MetroPCS: Similar to Leap Wireless, MetroPCS focuses on the youth and minority pre-paid segment demographic, lacking the scale of AT&T, Verizon Communications, and Sprint Nextel. It has not needed to rely on massive capital expenditures as its geographic focus is the densely-populated urban market; this has helped the company achieve high margins relative to its competitors.
References
- ↑ Disputes Antitrust Allegations Against Cell Phone
- ↑ "FCC Concerned by Domination of Wireless Industry by AT&T and Verizon," Trefis Investment Research, 06/11/2009
- ↑ "AT&T Takes on Google Over 'Terrifying' Internet Rules", Bloomberg, 10/21/09
- ↑ "AT&T Asks Employees to Deter Net Neutrality" The Consumerist, 10/20/2009
- ↑ "AT&T Sets its Sights on the 'Telehealth' Industry" New Jersey Business News, 12/06/09
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