AT AND T CASE STUDY

AT&T is a well-known and market-leading company in its industry. In the United States, it has a 34 percent market share. As of FY2014, AT&T has 120.6 million cellphone customers, 19.9 million landline customers, and 16 million internet customers this is what makes at and t case study important. AT&T is a telecommunications company that serves companies, people, and government organisations. Its portfolio is extremely diverse, which lowers risk and their reliance on any one area. They have the world's largest internet backbone spines and a massive infrastructure of fixed and mobile interpersonal functioning. This provides them an advantage over their competition in terms of providing a consistent level of service. On an average day, AT&T's worldwide backbone network handles about 82.8 petabytes of data traffic.

AT&T has incurred a $11.746 billion loss. A 65.9% drop from the previous year. This indicates a significant drop in finance help and a potential concern for the firm. Customers have chosen for video calling in the age of high-speed internet. The number of phone calls continues to decline. AT&T's voice connections decreased from 18.6 million in FY2012 to 14 million in FY2014. The company's earnings are being harmed as a result of this drop. Acquisitions are the company's primary source of inorganic expansion. For pay television services, it bought DIRECTV. AT&T's cable and TV client base would be tripled, bringing the total to more than 30 million. They bought Nextel Mexico for $1.9 billion in exchange for spectrum licences, network assets, and retail stores.

Customers are shifting for high bandwidth for faster speeds, according to a study. Between 2014 and 2019, global mobile data traffic is expected to rise at a CAGR of 57 percent, reaching 24.3 Exabyte per month in 2019. In addition, by 2019, mobile connections are anticipated to account for a quarter of all mobile connections. The only way to avoid dropped phone calls is to use data traffic. According to industry projections, the IoT market will expand at a CAGR of 21% from $1.9 trillion in 2013 to $7.1 trillion in 2020, up from $1.9 trillion in 2013. Furthermore, it is anticipated that 4.9 billion connected objects would be in use in 2015, with 25 billion expected by 2020. They should concentrate on cloud services while also enhancing mobile broadband capabilities.

AT&T is up against Verizon Wireless, Sprint, and T-Mobile, as well as a few regional companies. More than 98 percent of the population in the United States resides in regions with at least three competing mobile phone operators, and 94 percent lives in areas with at least four competing providers. As a result, the company's atmosphere is extremely competitive. For domestic activities, a T&T must adhere to US laws and regulations, but for foreign operations, it must adhere to the legislation of the country in question. Laws and regulations are rife with inconsistencies. This has a negative impact on data traffic and revenue for the firm. In FY2015, the country's wireless penetration was higher than in FY2014.

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Because AT&T has a global presence, it is vulnerable to political unrest and government laws, which make conducting business more difficult. In Latin America, notably in Mexico, the firm has a strong presence. South American governments, particularly Venezuela, which is experiencing hyperinflation, have proven politically unstable. Political instability in South American countries makes doing business challenging and may impair the company's capacity to deliver service. Furthermore, the firm is vulnerable to a deterioration in relations between the US and other governments, protectionist trade policies like as quotas, and insufficient legal protection of copyright laws, among other things.

Furthermore, because many of these financial institutions are based in the United States and Europe, where lending laws have gotten more stringent, AT&T may find it difficult to borrow from them. Also, the financial markets' capacity to lend has been affected by a lot of volatility owing to uncertainties caused by the US-China trade war, Brexit, the influence of Covid-19 on the global economy, and other factors. As a result, borrowing would be more difficult for the firm, or it may have to borrow at higher interest rates, raising the company's cost of capital. The firm is concerned that the cost of delivering video and other related services would rise.

AT&T's business has always been affected by social issues. The television business in the United States is changing as customer tastes and preferences shift. Two implications have emerged as a result of this. To begin with, there is a trend toward internet Over-the-Top (OTT) services. Some of these are massive corporations, such as Netflix and Amazon's Prime services. These OTT providers have a sizable subscriber base. Second, in the case of advertising-supported television, there is a downward tendency in subscriber numbers. Instead, SVOD services are becoming more popular. Both of these problems are related to the company's falling revenues and earnings. Despite the introduction of HBO Max the specific business online channel.

There has been an increase in demand for quicker video and data consumption across multiple platforms in recent years. AT&T will have to invest in its cellular, television, and broadband offerings. The firm maintains and expands its network bandwidths for video, data, and voice transmission in order to deliver these services. As a result, it continues to make significant investments in spectrum auctions, as well as software and technological equipment. However, there is still a chance of delays and higher costs than anticipated. This might be due to supplier delays, software difficulties, regulatory permission delays, and so on. The firm has come up with new strategies to collaborate with its stakeholders.

The spread of illegal, pirated content has been allowed by mobile and wireless technology. This has had an impact on Warner Media's overseas operations as well as business in South America. Many governments do not offer enough protection for intellectual property rights. This has an impact on the income of companies in such nations. AT&T is dealing with a difficult legal situation. This can involve allegations relating to antitrust laws in the United States, consumer piracy laws, patent rules, and other restrictions, among other things. In order to meet with government requirements, there is a significant financial investment required. The firm is also facing legal action for the harmful impact on staff and customer health.

Natural calamities, such as floods, cyclones, bush fires, earthquakes, and other natural disasters, might significantly disrupt AT&T's commercial operations. In addition, the firm is exploring innovative ways to become carbon neutral in the long run. For example, with In energy’s Samson Solar Energy Centre, the firm has completed the largest corporate solar energy transaction in the United States. The arrangement includes a purchase of 500MW of solar energy, making the firm the third largest consumer of renewable energy in the United States in 2019. By the year 2035, the firm plans to be carbon neutral. In addition, the agreement will boost local growth and create additional jobs. In addition, by 2030, the firm intends to cut its carbon dioxide emissions by a fourth. In the next three years, the firm wants to ensure that 50% of its subcontractors set their own Scope 1 and Scope 2 goals.

 

To sum up the case study, the ethical concerns are related to the company's corporate social responsibility, or CRS. It is the activity that assists the company in connecting with various ethical values, visibility, personnel relations, regulatory requirements, and respect for the mission of the organization and work. AT&T Inc. is the largest fixed telephone operator in the United States, as well as a supplier of internet and subscription television. With approximately 92.8 million cellular subscribers, slightly behind Verizon Wireless' 93.2 million, and more over 210 million total users, AT&T is the second biggest supplier of mobile phone service in the United States.