20 Years of Change
PREPARED BY: ADHAM MOHAMED GHALY
PRESENTED TO: DR. ZIAD ROTABA
Introduction:
Contents:
The Re-structuring.
Failing Strategy.
services
Technological Factors:
Legal Factors:
Economic Factors:
Market Analysis:
American Bell was the only company that have the technology
and allowed legally to use it.
Technologies Utilized:
resistance in a liquid.
Harmonic
Telegraphy
using
variable
Diffusing
the
companies.
technology
through
licensing
to
operating
and
Stromberg-Carlson (1894)
Economic Factors:
Technological Factors:
Legal Factors:
Market Analysis:
Technologies Utilized:
resistance in a liquid.
Products/Services:
Communications.
Harmonic
Short
and
Telegraphy
Long
using
Distance
variable
Voice
One System,
One Policy,
Universal
Service.
Vail
agreed
to
theKingsbury
Economic Factors:
Technological Factors:
Legal Factors:
Southwestern Bell (later SBC, nowAT&T Inc.), which acquiredAT&T Corp.in 2005.
Technologies
Switching.
Utilized:
Improved
Telephony
and
Automatic
Legal Forces:
Economical Forces:
AT&Ts long distance market share dropped from 90% (1984) to 50%
(1996).
Technological Forces:
Market Analysis:
AT&T lost its ability to reach almost every consumer in the United
States by its wires and bills. The last mile would be controlled
by the RBOCs.
Given the high fees for leased access, the company decided to
find an alternative. The options were Fixed Wireless Technology
and Cable TV lines.
According to the FCC, the goal of the law was to "let anyone
enter any communications business to let any communications
business compete in any market against any other.
the market.
The new telecom competitors, including cable firms, RBOCs, and mobile
service companies, had many options from whom to buy their equipment.
wireless
telecommunications market.
AT&T also was the biggest cable provider in the United States.
competitors feared that AT&T would see their plans and use the
profits to act against them.
telecom
network, switching and transmission equipment business, as well
as the famous Bell Labs.
The Restructuring:
New trends like video telephony, VOIP, and Video Over IP were
gaining popularity.
Market Analysis:
Technological Forces:
Legal Forces:
The FCC accepted AT&Ts plans provided that the company accepts
one of three choices:
Sell Liberty Media Group, a minority stake in Rainbow Media Holdings Inc.
and MediaOnes programming networks.
Sell 9.7 million cable subscribers, which was more than half of the
companys current subscribers.
Economic Forces:
The necessary acquisitions will load AT&T with too much debt.
AT&T was the largest cable and wireless network operator in the
country.
Products/Services:
Services.
Internet
Services,
Voice
Services,
Media
It was to provide AT&T with the ability to offer high speed service
to businesses in major US urban areas.
The reality of creating the vision was much more difficult than
Armstrong anticipated.
The acquisitions left the company with $64 billion in debt, making
AT&T one of the industrys most indebted companies and
affecting its stock.
Questions