Rootmetrics: A Case Study

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.

The generation of talking face-to-face is slowly fading away, and the technology era is going to keep on growing. One of the most widely used technology services known today is the cellular phone industry. According to the Pew Research Center’s website, 90% of American adults own a cell phone. Of that 90%, the smartphone ownership is at 64% (2013). Verizon Wireless, along with the other major carriers, T-Mobile, Sprint, and AT&T, have taken this data and comprised a growing industry where competition arises from all angles. These companies have battled one another on pricing, plans, and customer service for many years in order to stay on top. Unfortunately, these are major factors in whether or not a customer will choose the particular company over another.

Verizon Wireless is a big time cell phone company in which for years now, has been widely regarded as the top of competition. Which include companies such as at&t, sprint, and T-Mobile. While there are many other companies these are seen as the tops of competition in regards to others. Verizon in many of its commercials use a variety of rhetorical tactics to persuade you to believe they are truly the best in service. These tactics include providing coverage maps, using colorful balls in which compare between the four companies, and using written text stating facts about their coverage and overall service. While verizon may be the top in service all around I do believe some things are a little stretched.

This is a great move for sustainable reporting in the social department. The more countries AT&T services, the greater the likelihood for membership, as well as connecting businesses and communities more effectively. To continue with this North American mobile service advancement, AT&T will need to look into Canadian mobile providers they can buy, or build towers and lines in Canada. This would involve a 50% or more increase in financing towards building or buying towers and lines. This should be looked at over the next 10 to 15 years to determine the best time to make this

Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.

The primary business of AT&T Incorporation is telecommunication. This American leading company provides both fixed telephony and mobile telephony. Amongst other services that the company offers include broadband television subscription. Currently, AT&T Incorporation is a leading fixed telephony provider and the second largest mobile telephony provider in United States of America. AT&T Incorporation has steadily grown to become the third largest company in Texas, United States. In addition, it is the largest company in Dallas.

Due to wide coverage and most efficient customer service Verizon has become the largest Wireless communication company in U.S.

From a business-level strategy, Verizon Wireless is the leader in customer service, according to consumer reports, with an overall satisfaction score of more than 72 percent.

Verizon Communications formed by the merger of two big and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunication company. The company serves large part of the market in United States. However the company faces certain strengths and weaknesses which affect the way company formulate its strategies.

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)

This is not the first time that Legere has made comments about other wireless phone carriers. He has made comments to the two largest carriers In the United States: Verizon and AT&T.

Some of the products they have in their cellphone section is the new iPhone, it has a touch screen and internet capabilities. AT&T also has the first live video feed phone, where you can talk to each other live, but only a few phones have this feature, they are sure that other companies will follow their lead. Also, most newer phones have the walkman radio, e-mail, IM, Internet access and also have MP3 capabilities. This product was sure to please the younger consumers. In addition, AT&T wireless is the only company to offer rollover minutes and the unity plan. The Unity plan is were you can call any land-line that is an AT&T subscriber and any AT&T cellphone without having to use your “any-time” minutes. Discounts are offered to their employees and the public that work for various coorporations

In the telecommunications market, Mexico grants almost fifty percent of the FDI for companies to provide fixed networks and services. As for the US, Congress introduced a bill that grants foreign investors access to the telecommunications market. However, the bill was held back a lot due to demands for a “reciprocity clause”. This reciprocity clause allows the Mexican telecommunications market to open up for to other countries that are trade partners with Mexico.

In analyzing Verizon's strengths, it is apparent that they have strong brand recognition in the market and industry. They are not only the leader in market share for wireless presence in the U.S., they were also ranked at the top for branding and customer loyalty in the wireless phone category and received the 2005 BrandWeek Customer Loyalty Award as a result (Verizon Customer Satisfaction – Award & Recognition, 2005). In addition to strong brand recognition, Verizon is ranked the

AT&T was broken up into the Bell companies in “1974 by the U.S. Department of Justice antitrust suit against the monopoly” (From Wikipedia, the free encyclopedia). Today AT&T has become a competitor vying for control of the telecommunications industry. “In monopolistic competition, there are many firms vying for control of one market. Each firm offers a different type of product, as opposed to perfect competition in which all offer the same product. Each firm, then, has a monopoly in the market of their own product”(Oracle ThinkQuest Education Foundation) AT&T in 1988 began purchasing stock in Sun Microsystems to begin its diversity in product services. Throughout the 90s AT&T continued purchasing more computer companies and cell phone companies to gain market share in the growing telecommunication industry (CyberStreet). Good pricing structures align with costs. AT&T Wireless realized that the marginal cost of a cellular minute was small compared to the cost of acquiring and maintaining customers. Their switch to a flat fee “One-Rate” plan was a huge success, stealing heavy users away from the competition. Prices increased for light users and many became hooked on the cellular lifestyle (Lake Partners Strategy Consultants, Inc. [LPSCI], 2001-2004). AT&T has seen that the ability to change quickly in the ever-evolving telecommunications market will help in gain market share. Its ability to see the value in keeping customers rather