At&T Strategic Action Plan Essay

2291 Words Nov 17th, 2010 10 Pages
AT&T

AT&T is a leader in telecommunication services, including cell phones, wireless, U-verse, digital TV, high speed internet, DSL, and home phone. AT&T currently employs over 280,000 people worldwide. AT&T is now ranked #7 on Fortune 500 list, where its main competitor, Verizon, is listed as #13. Headquartered in Dallas, Texas, AT&T Inc is the largest U.S. local and long distance phone service provider and second largest wireless service provider, with over 87.0 million wireless customers. AT&T was created in 2005 after SBC Communications acquired AT&T Corp.

The current emergence of AT&T traces its roots back to 1882 and the Southwestern Bell Telephone Company. Ameritech, Southwestern Bell, Pacific Telesis, and Bellsouth comprised
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(The Economist 2010)

AT&T’s 3G network has recently seen a huge turnaround. In February 2010, AT&T landed a win in a new test of 3G performance in the US. AT&T had both the fastest average download speeds, at 1.4Mbps, and the fastest uploads, at 773Kbps. Both were major improvements and were as much as 84 percent faster than what was seen a year earlier. T-Mobile and Verizon were only periodically able to top 1Mbps while Sprint would only come close to the mark. (Sullivan 2010)

Weaknesses:

• Products and services could be improved.
• Customer service
• More sales staff
• More marketing to get the information out
• Large amount of debt
• The cost required to maintain and improve wireless and wire line networks
• Increasingly more price-competitive market in both retail and wholesale markets.
• Company obligations and liabilities from old business unit spin-offs.
At the end of 2008, AT&T owed 168.9 billion dollars which included current liability, long term, and total deferred credit and other noncurrent liability. Their short term debt that was maturing within the next year totaled 14.1 billion dollars and long term debt equaled 60.9 billion dollars.

Debt isn’t the only concern of AT&T. The company is taking a beating in Wall Street. The decline in landlines, which still accounts for around a

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