Introduction AT&T is a part of the Telecommunication Industry, which offers a wide variety of services, such as telephone, Internet services, Digital Services and wireless services. AT&T is currently the largest telephone provider in the U.S. and the second largest company for wireless mobile communications In 2009, AT&T was ranked number one as the world’s most admired company in Fortune Magazines list.
History AT&T can be dated as far back as 1885 when it was created to expand and operate the long distance telephone networks in the U.S. that were created by Alexander Bell. AT&T pioneered their way through early telecommunications, first with the invention of the phone then with the first T.V. and radio transmission. AT&T’s biggest accomplishment came in 1962 with the help of NASA, when AT&T placed the first commercial satellite in space.
History continued In 1913, the government established the Kingsbury Commitment, that said AT&T could act as a monopoly to provide universal service. This commitment was overturned in 1982, which resulted in the AT&T’s break up into seven smaller divisions. As the new AT&T began, they changed their concentration to their networks for wireless communications and broadband.
Competitors and Acquisitions Competitors Verizon (Land lines, TV, Wireless, Internet) Sprint (Wireless) T-Mobile (Wireless) Metro PCS (Wireless) Note: AT & T is the largest telecommunication provider, ranking in at number 7 with Fortune 500 Acquisitions BellSouth Cingular Wireless
Financial Performance ‘A’ ratings by Fitch Ratings Profit-increased 26% in second quarter from last year. June 30, 2010-Cash on hand $1.4 billion June, 2010-financial debt decreased $2.1 billion to a total of $70 billion Profit totaling $4 billion End of 2009-Financial leverage was 1.74%
Stock Performance As of August 20, 2010 Selling price $26.45 52 week high $28.73 52 week low is $23.78. Earnings per share in 2009= $2.12.
Product performance U-verse revenue passed $1 billion iPhone-3.2 million activations in the second quarter iPhone 4-expected to increase new activations for third quarter
Forecasts AT&T has improved wireless technology in which helped surpass original analyst’s forecasts. AT&T’s increase in sales, can be contributed to their Wi-Fi assets and network readiness. As of 2010, Forbes listed AT&T as the 13th largest company in the world and the 8th largest non-oil company in the world
Forecasts Continued AT&T is currently the sole provider for the iPhone, and they recently teamed up with blackberry to release the new Blackberry torch with U-verse technology. AT&T is expected to expand the new U-Verse technology to their other phones, which will help to further increase the companies sales in the future.
Issues & Resolutions Trouble getting new customer contracts
In an effort to increase new contracts AT&T is offering Tier data plans in place of unlimited plans
Customers that want to pay less for data plans may prefer tiered plans
High Wireless-Data Traffic
Tiered plans offer 200mb or 2GB
This should control customers use of wireless data
Customers Texting and Driving
AT&T teamed up with Phillies star Shane Victorino to run a Texting Can Wait Campaign
AT&T News Room (2009). http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=26866 The History of AT&T (2010) https://www.corp.att.com/history/history2.html Taylor, Paul (2010,July 22). Wireless Unit helps AT&T Beat Quarterly Forecasts http://www.ft.com/cms/s/32db1732-95c3-11df-b5ad-00144feab49a,dwp_uuid=8ecc657a-3018-11da-ba9f-00000e2511c8,print=yes.html
Telecommunication Industry http://www.csustan.edu/manage/harris/industry4.html
Woyke, Elizabeth (2010, January 27). Why Apple is sticking with AT&T http://www.forbes.com/2010/07/22/briefing-markets-earnings-att-forecasts.html
References Randall Stephenson. (Feb. 17, 2010) 2009 By The Numbers. AT&T. Retrieved from: http://www.att.com/gen/investor-relations?pid=17388 Martin Peers. (June 3, 2010). Now AT&T Weighs the Price on Data. Wall Street Journal (Online), Retrieved August 13, 2010, from ProQuest National Newspapers Premier. (Document ID: 2048417151) AT&T Inc.; Phillies Star Shane Victorino Joins AT&T in Reminding Students Texting 'Can Wait'. (2010, August). Computers, Networks & Communications,387. Retrieved August 13, 2010, from Research Library. (Document ID: 2107082771) Jason Buch. (2010, July 23). Apple deal increases AT&T's profit. San Antonio Express-News,C.2. Retrieved August 13, 2010, from ProQuest National Newspapers Premier. (Document ID: 2089328571)
References Fitch Ratings; Fitch Rates AT&T's Proposed Debt Issuance 'A'; Outlook Stable. (2010, August). Investment Weekly News,400. Retrieved August 13, 2010, from ABI/INFORM Trade & Industry. (Document ID: 2107735091) Roger Cheng. (2010, July 23). Earnings: AT&T Says a Growth Signal Is Ebbing --- Profit Rises 26%, but Rate of Increase Among Contract Subscribers Slows Down; iPhone Raises Cost of Adding Customers. Wall Street Journal (Eastern Edition), p. B.4. Retrieved August 13, 2010, from ProQuest National Newspapers Premier. (Document ID: 2088954801) AT&T Inc. Financial Review 2009. AT&T website. Retrieved from http://www.att.com/Common/about_us/annual_report/pdfs/ATT2009_Financials.pdf