At&T Wireless: Text Messaging

The Canadian cellular service’s industry is comprised of approximately 15 cellular providers. These operators employ approximately 16,000 individuals and generate more than CAN$10B in revenues annually, which represents almost 30 percent of the Canadian telecommunications market. The Canadian wireless industry has been experiencing an annual growth rate three times that of any other Canadian telecommunications sector. This is very significant as Canada is in the top 10% in the world for broadband penetration.

- The smartphone industry is very capital intensive due to high research and development (R&D) costs and expensive manufacturing facilities. This raises the barrier of entry and makes it difficult for small companies to enter. Many of the firms that compete in this industry have existing long-term contractual relationships with mobile carriers and benefit from their significant brand equity. These companies also have a great deal of knowledge and experience through economies of learning, which gives them a major cost advantage over smaller entrants. New entrants will have difficulty getting carriers to adopt their phones because many carriers are already in profitable deals with the large mobile phone manufacturers.

Price: Pricing decisions should take into account profit margins and probable pricing response of competitors.

CTIA – The Wireless Association reports that the number of text messages sent in the US rose from 362.5 billion in 2007 to an astonishing 2.19 trillion in 2012. In light of

The future of the telecommunication industry is an exciting future. No longer can these companies depend on telephone service plans to maintain profit. Each company needs to find other avenues, packages and services that can be sold to existing customers while attracting new customers. The companies

The telecommunications industry has steadily rebound since 2009; this is because of the growth of not only the mobile and broadband structures, but also the increase of the video market. In Figure 1, the projected outcome is indicates a steady increase in the new 4G mobile broadband networks which will fuel continued wireless growth. “Business customers in particular will continue to use this technology to expand their capabilities beyond the desktop computer. Emerging markets such as China, India and Latin America are expected to see strong growth,” (Verizon, 2011).

The setting of ‘fair’ prices to consumers: the company should bear in mind that customers nowadays will shop around to compare the intended products and services. However for the business survival and growth purposes, the company should also maintain its profit margins to ensure its business growth and expansion. The company needs to consider its cost factors and business operation areas to reduce or minimise the costing areas.

Texting is our number one form of communication. In 2012, Americans sent over 69,000 text messages a second. Since then, the number of monthly text send increased by more than 7,700% over the last decade, making

In the fast-paced digital era with more and more devices accessing the internet, AT&T would be wise to seek out future trends in technology to gain a competitive edge. Advances in consumer electronics and wireless technologies combined with consumer preferences, will heavily influence future profitability for AT&T.

When a business can provide a lower cost, then the business can have the ability to lower their price. Providing a better pricing system, along with sharp value products can only increase the chance of growth and customers’ overtime.

Canadians demand for cutting edge mobile technology and services has shifted the industry to require frequent capital expenditure. Unofficially, Wind Mobile could be potentially the fourth biggest communication service provider to address the evolving nature of technology. The global boom in demand for mobile cellular communications has been increasing exponentially. There is clearly a continued need for investors to invest in new technology within the wireless industry.

Pricing strategy associated with services is typically more complex than the pricing of tangible goods. As a consumer, what pricing issues do you consider when purchasing services? How difficult is it to compare prices among competing services, or to determine the complete price of the service before purchase? What could service providers do to solve these issues?

The prices a company sets for its product and services must strike a balance between gaining acceptance with the target customers and making a profit for the organisation.

This market allows organization a free long term ability to adjust their good services and prices with the changes in the market conditions. Thus AT&T should take advantage of the freedom in this market structure and ensure that their supply and prices are correlated to their demands.

Trends in the market include the growing number of people within the 15-29 age range. Also, phones are being used for much more than just calling, other functions like texting and music playing capabilities have dominated much of a user’s data usage. As for market characteristics, the mobile industry has reached almost 50% penetration with about 130 million subscribers, and reaching its maturity. The cost structure has been very confusing for consumers, with hidden fees, overcharges, and lacks to reward users who do not use their plans to the max. And finally, channels include all service provider stores and retail consumer stores, for example, Target, Walmart, and Best Buy.