Trends & Future Conditions - AT&T
The telecommunication industry that AT&T essentially created has undergone radical advancements, particularly within the last decade. According to the IBM Institute for Business Value, approximately 15% of the world’s population had access to a telephone in 1999 but by 2009, 70% of the world’s population had mobile phone subscriptions (Nelson & van den Dam, 2010). Given the extraordinary explosion of mobile computing and wireless communications, continued advancements within the global telecommunication industry are certain. A number of trends drive this evolution including the advancement of devices and network access technology, changes to users’ consumption patterns and services compositions, a shifting industry structure, and finally the future of regulation in the telecom industry. In order to maintain its position in the ferociously competitive telecom field, AT&T needs to consider these trends and other forces of change to gauge its potential within the market.
AT&T currently maintains a strong presence in each competitive market in which it participates including local & long distance telephone, wireless services, residential internet & cable services and business Ethernet and Voice over IP (VoIP) services. Residential landline telephony is quickly becoming extinct, a fact AT&T is well aware of as they have focused on expanding their wireless 4G and Wi-Fi networks and instead offer residential telephone services under their U-Verse product which combines home internet, telephone, and cable services. Its competitors in the U-Verse arena include local cable/home internet/telephone providers, and national cable TV giants Time Warner and Comcast, along with satellite providers DirecTV and Dish Network. In terms of wireless subscribers, AT&T is among the top three along with nemesis Verizon and Sprint, who are also their main rivals in the business class
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