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At&T The Multinational Congolmerate Essay

1714 words - 7 pages

AT&T is a very large multinational corporation that focuses on telecommunication products. They were founded in 1893 in Alexander Graham Bell (who invented the telephone) and are headquartered in Dallas, TX. They have grown into being the #1 provider of wired telephony and #2 in mobile telephony in the United States. They are currently experiencing a dramatic shift in their market presence as landlines continue to decline as mobile and broadband are taking over as their main growth markets.
AT&T’s relevant market has and always will be in telecommunications. Telecommunications can be defined as connecting individuals and information through means of technology such as airwaves and wires. ...view middle of the document...

They also continue to invest heavily in their mobile spectrum capacity, purchasing more and more spectrum from rivals which will help continue to support their growth over the next decades. Another growing market segment for AT&T is in broadband. Broadband is mainly defined as internet data usage for consumers and businesses. As consumer and businesses needs for faster and faster internet continues to grow, AT&T has invested heavily in building better and faster fiber optics networks so that they can keep up with demand. They launched their U-verse service in 2006 to try to compete with other broadband and cable providers and have seen steady growth of 10% over the last few years. One major market that AT&T is pushing to compete in is the international market. Since its inception, they have focused mainly on growing the domestic US market but they have seen that huge growth is possible internationally as more countries begin to develop their communication infrastructure. Since 2005, AT&T has been expanding their international footprint in making licensing deals in Latin American through Carlos Slim’s American Movil and also in Spain with Telefonica. AT&T will continue grow in expanding markets but will generally attempt to keep their focus as a telecommunications provider.
Since AT&T is providing a commodity in telecommunications that most people in this world generally need, there is some tough competition. AT&T is no stranger to this, as they started out in the 1890s providing telephone service but has to shed competition away since their inception. However, competition has been something that has actually helped AT&T since they have grown so big through acquisitions of their competitors. Without growing through the history of their acquisitions, it is better put to simply state that AT&T has acquired over 25 competitors over the last 100 years, mainly ones that were connected to Bell Technologies (which was actually started by the inventor of telephones, Alexander Graham Bell). In today’s landscape, AT&T has many competitors, but they differ in their respective markets. For example, in the landline market, AT&T’s main competitors are Verizon and Comcast, who both offer landline service in addition to broadband services. AT&T has always dominated this market as they were the first to build complete landline service throughout the entire country. Their competitors have only grown due to AT&T selling off various regions that they were no longer interested in offering service to anymore. Their market share has not changed much over the years due to competition, but their revenue base has declined significantly as consumers no longer feel the need to own a landline anymore. This market is seeing a 12% drop annually as new subscribers are miniscule and cancellations are abundant. However, in the mobile space, AT&T sees the widest array of competition. Since mobile is largest growing telecommunications sector, competition is grim and is...

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