By 1997, Sprints customers had grown to seven million local service customers running hundreds of televisions ads touting their superior long-distance service and basking competitors, but Sprint was still in fourth place among wireless carriers, like Verizon, Cingular, and AT&T (Schiesel, 2001). WorldCom Inc., the new parent of MCI, offered $115 billion for Sprint in October 1999 which would’ve created an enormous new company. McCraken (2012) finds, Sprint stockholders approved of the merger in April 2000, but federal regulators ruled that it should not go through. After a nine-month hold, many top executives cashed out and left and the buckle of the WorldCom merger set back some of Sprint’s plans. In late 2001, telecommunications market was
Robert Zimmerman, the senior vice president of business development, for American Cable Communications (ACC) was in the process of looking for a potential acquisition target for ACC. In December 2007, Zimmerman remember a presentation that was made recently by Rubinstein & Ross (R&R). R&R was a boutique investment bank that was well known for doing deals in the media and telecommunications area. During this presentation it was suggested that ACC buy out AirThread Connections (AirThread) which is a large regional cellular provider. The current industry of these companies were moving more toward bundled service offerings and by adding AirThread it would help ACC cover an area of service it does not currently offer. In order to determine if the acquisition should be done an analysis needs to be done.
MCI Case Analysis INTRODUCTION MCI is at a critical point in their company history. After going public in 1972, they experienced several years of operating losses. Then in 1974 the FCC ordered MCI's largest competitor AT&T to supply interconnection to MCI and the rest of the long distance market. With a more even playing field, the opportunities to increase market share and revenue were significant. In order to maximize this opportunity, MCI requires capital.
Television, the phone, and the internet. These inventions have uniquely shaped the 20th century and have led to the 21st century being known as the age of information. These services are the primary ways we communicate, express ourselves, and reach out in our ever increasing global world. In the United States, these services are provided by a number of different firms, chief among them is Comcast, being the largest provider of Cable and internet in America, and a large telephone provider. Next to it stands Time Warner Cable, the second largest provider of cable in the United States. The decision for Comcast to buy Time Warner Cable for forty-five billion dollars in 2014 has led to many criticizing the merger, calling it a monopoly. Others have called the whole cable system an oligopoly. For it to be a monopoly or an oligopoly, it would have to fit their respective categories. The merger between Comcast and Time Warner Cable would not create a true monopoly, but would give it significant market power because it has monopoly resources and can be considered a natural monopoly. It will also further its power in a market dominated by oligopolies. People argue that it is not a danger to Americans for this merger to happen, but when one looks at the practices Comcast already uses, it paints
In conclusion, current trends and significant events concerning T-Mobile were examined. A hard look was given to the economy, demographics, technology, political and legal issues, and social characteristics. T-Mobile is strong across the board, with surprising statistics backing up a variety of topics. The economy is strong, the demographics are not far-fetched, technology is improving, there’s no huge political or legal scandal, and T-Mobile is socially strong.
...ies Sprint can also merge with Comcast and start their dish network capabilities. This would really attract them to other customers and cover more ground in service. They have to improve their customer service which is the number one issue they had for ears. So training employees to have exceptional customer service will help them in the long run to keep their customers.
Upon the acquisition and merger of legacy AT&T Wireless by Cingular Wireless and the solidification of SBC, BellSouth and Cingular Wireless, the New AT&T mobility business unit now leads in the current market share narrowly over Verizon Wireless.
Management practices are highly followed in today’s workplace and for good reason since evidence suggests successful companies follow these strict practices. Regulating employees through a program that is setup to promote success is what the five management practices are about. Discussed will be the management practices of planning, organizing, staffing, leading, and controlling and how they relate to the corporate environment of Comcast Corporation through my personal experience.
It is proper to present a business definition of merger as it found on legal reference with the ultimate goal in the pursuing of an explanation on which this paper intents to present. A merger in accordance with the textbook is legally defined as a contractual and statuary process in which the (surviving corporation) acquires all the assets and liabilities of another corporation (the merged corporation). The definition go even farther to involve and clarify about what happen to shares by explaining the following; “the shareholders of the merged corporation either are paid for their share or receive the shares of the surviving corporation”. But in simple terms is my attempt to define as the product or birth of a corporation on which typically extends its operation by combining with another corporation. So from two on existence corporations in the process it gets absorbed into becomes one entity. The legal definition also implied more than meet the eye. The terms contractual and statuary, it implied a process on which contracts and statuary measures emerge as measures to regulate, standardized, governing or simply at times may complicate whole process. These terms provide an explicit umbrella and it becomes as part of the agreement formulating or promoting a case for contracts to be precedent, enforced or regulated in a now or in the future under a court of law under the Contract Business Law Statue of Practice. As for what happens to the shares of the involved corporations no more explanation is needed as the already actions mentioned clearly stated of the expectations of a merge’s share involvement.
In fact, some of the biggest threats to the company’s growth are the government’s regulation that increases the risk to the underlying business. In addition, the risk of losing the exclusive contract for the iPhone would be a major loss for AT&T. Most of the consumers choose AT&T because of their exclusive contract for the iPhone. Hence, this loss of business will significantly influence the AT&T's profitability and revenue. Moreover, the antitrust authorities play an important role on approved the merger of AT&T.
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
Employee motivation is one of the keys to success in any business, especially in a retail sales environment. It is particularly important to understand how employee motivation can be impacted by the strengths and weaknesses of AT&T’s retail sales consultant position (RSC). A series of interviews and surveys were conducted over a two-week period with employees of AT&T in the RSC position as well as retail management positions to determine how the employees really feel about this position as well as internal strengths and weaknesses that contribute to employee motivation. Although there are a lot of positive factors that keep the employees motivated within AT&T, there are some weaknesses that can cause employees to become demotivated.
Effective competition is widely seen as a key to the development of telecommunications services. The ability of new telecommunications networks to interconnect fairly and efficiently with existing networks is critical to the development of competition. AT&T has undergone numerous changes since its inception in the late 19th century. The McKinsey 7 S framework as applied by Pascale is recommended to manage the changes they are facing to adopt a greater competitive presence in the global economy. In conjunction with this framework, numerous other models were applied to analyse the global competitive position of AT&T. Recommendations for a revised strategy and direction for AT&T have been made throughout this document including two scenarios of how the telecommunications industry might develop towards 2000, while outlining the impact on AT&T.
In the 1990s, the telecommunications market was rapidly changing with the addition of new entrants from a competition standpoint that were forcing WorldCom to decrease prices. Long term leases for
By 2001 the telecommunications market was softening; meaning prices were falling due to an excess of supply and a decrease in demand as the dot com boom ended. WorldCom had already signed contracts with third party telecommunication companies promising to complete their calls. These multi billion dollar contracts were actually costing more in expenses than what the company would or was receiving in revenue (Sandberg, Solomon, & Blumenstein, 2002).
In India, mergers and acquisition in telecom industry increases from the mid of 1990s.In developed country like US, the mergers acquisitions in this sector is going in the full-fledged manner.