Environmental Analysis

Environmental Analysis

Tamasha Glenn

University of Phoenix

MBA 501

The FCC approved a merger between AT&T, Bellsouth, and Cingular Wireless to form one phone company called The New AT&T. The purpose of this merger is to create a single communications company that is able to provide a more technologically advanced cost effective service to customers. The results of this merger will be dramatic change not only for consumers, but also company employees. There will be skeptics who are not accepting of the merger and think that the decision made by the companies will cause a monopoly on the communications industry. In response to the negative feedback, AT&T has said, “the merger would likely result in cost savings and other efficiencies that should benefit consumers” (att.com). This paper will show and environmental analysis on the telecommunications industry with a focus on landline telephone service with AT&T.

“The Bell system was broken up in 1984 by an agreement between the former AT&T and the U.S. Department of Justice, in which AT&T agreed to divest itself of its local telephone operations but retain its long distance, R&D and manufacturing arms. Out of the divestiture were born SBC Communications, Inc (formerly known as Southwestern Bell Corp.) and Bellsouth Corporation” (att.com). After this break up the company sustained much success in their services and continued to offer the most advanced technology in their services for their customers. “AT&T has led the industry in the development of DSL (digital subscriber line) and other broadband internet and delivery systems…” (att.com). Bellsouth has continued to value the reliability of their customers and dependability of their customers and their employees. When the merger completed in December 2007 the decision was made that in order to keep up with technology and within their budget, there will be layoffs of some employees. AT&T plans to layoff approximately 10,000 employees within the next three years and has made plans to outsource some of their jobs as well. In order to stay competitive these changes became more self-evident. All changes have been communicated first step in change but what else is needed with the public and customers effectively.

The company continues to uphold their ethical standards of the company. The main focus is customer satisfaction. One of the greatest attributes that the company possesses is reputation. There ethics tradition is long-standing and has maintained trust and loyalty within their customer base, shareholders, and employees. “As we work to maximize shareholder value, we will not waiver in maintaining our tradition of ethics” (att.com).

Their ranking has been kept as one of the world's largest providers of IP-based communications services for businesses, with an extensive portfolio of Virtual Private Network (VPN), Voice over IP (VoIP) and other offerings, all backed by innovative security and customer support capabilities. They are also the world leader in transport and termination of wholesale traffic and recognized by numerous industry experts for its industry-leading wholesale services portfolio.

ATT’s Global Headquarters is in San Antonio, Texas and currently has 302,000 employees. ATT’s vision is to be an advocate for the digital lifestyle by making broadband internet access, wireless services, voice and video work together in the consumer’s living room – or wherever the consumer goes. The current strategy is to attract additional customers by offering integrated telecommunication services. AT&T recognizes the need to responsibly use energy, fuel and other natural resources and works to lessen its impact on the global environment through several environmental initiatives.

Their environmental influence internally focuses on the United States. AT&T is the premier U.S. provider of broadband, long distance and local voice services. The company serves millions of customers, with a concentration in 22 states: Alabama, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Wisconsin (att.com).

“Through its ownership of Cingular, AT&T is able to deliver a range of wireless voice and data services to customers across the United States and globally. Cingular is the nation's largest U.S. wireless carrier based on subscribers, with 61 million, and spectrum in 49 states. The Cingular relationship expands AT&T's ability to provide a range of innovative and flexible solutions that integrate wireless and wire line communications”