Technological: In the past three decades, a major shift in technology has prevailed in the mobile handset industry. Through innovation and technological advances, the market shifted from analog transmissions (1G), to digital mobile communications in 1992 (also known as 2G), and ultimately to the Wideband Data Communications network (3G). With rapid changes in this dynamic marketplace only the most well-funded and well-managed companies have managed to emerge from generation to generation, whilst others have been unsuccessful.…
SGMT 6050 – Case Write-‐Up McCaw Cellular Communications: The AT&T/McCaw Merger Negotiation Armin Ezatagha Student Number ⏐ 205 576 707 eMail ⏐ aezatagha12@schulich.yorku.ca Schulich School of Business Tuesday, March 05, 2013 Current Telecommunications Ecosystem McCaw Cellular Communications (MCC), although positioned well with a new acquisition of LIN Broadcasting, find themselves in debt by $5 Billion could benefit from AT&T’s (ATT) brand name, data banks, marketing clout, and technical expertise.…
Department of Justice announced that it would seek to block the merger, and filed a lawsuit. Regulators questioned the effects the deal would bring not to consumers but the market in general. The acquisition would give AT&T 130 million subscribers and saturate the wireless industry to three main players. The market would essentially be an oligopoly. Regulators feared that the merger would cause higher prices, fewer choices and less innovation. AT&T chief executive Randal Stephenson stressed the fact that the deal would improve overall network quality and lead to large saving of the company, just a few of the benefits that the merger would behold.…
Eaton, M. (2010). How Comcast Will Sustain Competitive Advantage. The Bodhi Tree Group. Accessed on 16th November 2014.…
The telecommunication industry has experienced substantial growth during the last 20 years, and offers frequent technological upgrades that has enabled these companies to find new revenue sources and growth opportunities. The telecommunication industry is responsible for radio, television, and broadband services, but the biggest factor of their business is through the cellular telephone market, which has also grown at an incredible rate over the past 20 or so years. In this report, I will be comparing two of the biggest competitors in this industry, Verizon and Sprint.…
O’Brien, Casey and LaFerney, Julianna. 2009. Telecom Mergers & Acquisitions: Economical & Technological Effects Verizon & Alltel as a Case Study.…
As the public’s dependence on cell phones continues to grow, the cost of the phones may be decreasing, but the stronghold that telecommunication companies have on the public in regards to contracts and climbing fees is alarming.…
By much research, ATT has had opposition in the past which at times would end up in merger with another company. Many times small phone companies can not compete with ATT and thus kneel to them and soon become a part of the family of the biggest telecommunications giant this world has ever seen. We can see by the current merger of SBC and the Global name of ATT has given the public a misconception that ATT was bought out yet in all fairness it seems that ATT had the upper hand due to it’s strong name known all around the world. This was considered a weakness in my review. But this weakness can actually be strength due to the bonding and assets of two companies that really once was the same ATT we seen fifteen years ago when the Telecommunications act in 1996 prevented ATT from being a world conglomerate (Sirota 1999). Another weakness that can be said of ATT is their lack of Voice over Internet Protocol. Many companies have gone and used the internet to give people the chance it’s full potential and incur long distance charges. This has left ATT astounded due to the fact a missed opportunity went below the radar (Dinan 2008).…
The Union consisted of twenty-three northern states like, Maine, New York, Massachusetts, Connecticut, Pennsylvania, New Jersey, and several others. Their president was Abraham Lincoln. In most areas the north was ahead of the south. For starters, it consisted of more people in general, and because it had more states, therefore it had more people enlisted in the military. The Union was more advanced when it came to the industrial and agricultural aspects.…
Verizon and MCI: A Merger that Promotes Competition August 2005 POLICY STUDY No. 05-1 by Richard E. Wagner Harris Professor of Economics George Mason University; Fairfax, VA and Senior Fellow, Public Interest Institute Mt. Pleasant, IA POLICY STUDY August 2005 No. 05-1 Public Interest Institute Dr. Don Racheter, President Verizon and MCI: A Merger that Promotes Competition POLICY STUDIES are published as needed.…
As I walked through the entrance, I headed down the ramp that led into the lobby, which lied underground, between the legs of the Arch. The sun entering through the doors reflected off the marble tiled floor. The first site I came to was the appealing blue fountain that resided in the exact center of the lobby. The royal blue water spout about four or five feet into the air and cascaded down into a small square pool. There were plants lining the edge of the pool and lots of children crowded around it. As I stared to my left, I saw the large off-white sign that read "Tickets" in hunter green letters hanging from the ceiling. Behind the ticket sign was a long chain linked area, creating a weaving line of guests eventually arriving at a large cream colored counter. This area, known as the ticket center, housed the cashiers who sold tickets to the various events offered at the Arch. There were six windows with cashiers dressed in Carolina blue polos behind each station.…
The key players in the wireless industry are Verizon Wireless, AT&T, Sprint, and T-Mobile. With these four companies controlling 90% of the market, there are no other ‘key players’ in the industry. U.S. Cellular is not quite a ‘key player’, however they do hold approximately 2.4% of the customer nationwide and must be in the overall picture. In addition, the data suggests that the pool of potential people that would get a cell phone is almost entirely saturated so it does not look as if there is any room for additional competition.…
WorldCom, formerly known as the second largest long distance phone service, had taken its fall and officially took its final name on April 14, 2003. This Company’s mission statement was to “Create a competitive advantage for WorldCom and contribute significantly to WorldCom's business success by promoting business practices that provide greater opportunity for a diverse supplier base." Throughout WorldCom’s lively years, it had great growth through the buying out of other telecommunication companies, such as MCI Communications, Tier 1 ISP UUNET, and had a major part of the internet backbone. On November 10, 1997, this powerful company announced their 37 billion dollar merger, making it the largest in US history. WorldCom had almost become the nation’s top telecommunications provider if the Sprint merger had gone through. This merger couldn’t go through because of the concerns the US Department of Justice had about the possible future monopoly.…
Telecommunications and services act allowed competition to grow: Increase in competitive firms in the communication industry in Europe.…
The South African mobile market structure can be classified as an oligopoly, or even a duopoly, with two firms, Vodacom and MTN of more or less the same size dominating the market. Both Vodacom and MTN have market shares of at least 35%. This implies that both firms can be classified as ‘dominant’ i.t.o. the Competition Act. It is also important to note that the combined market share of the two large players is approximately 80-90% which should be an indication of their collective market power. Where two large companies control a market (duopoly) and they have similar cost and pricing strategies, competition levels may not be optimal.…