AT&T Wireless Analysis
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Although AT&T had begun research and development of wireless telephony as early as 1930, it was not until October 2000, that AT&T Corporation announced to the business press and its shareholders that the company would split into four publicly held companies, AT&T Broadband, AT&T Wireless, AT&T Business, and AT&T Consumer, each trading as a common or tracking stock. AT&T Wireless, trading on the New York Stock Exchange as AWE, on July 9, 2001, became the largest independently traded wireless carrier in the United States. The company claims to operate one of the largest digital wireless networks in North America. The company claims 18 million subscribers, and it's first complete 10 K filed in July, 2002, showed revenues of $13.6 billion. AT&T Wireless has a business model of offering customers high-quality wireless voice and data communications services in the U.S. and internationally ("Restructure" , Online). Karlgaard (1997) in a long essay in the Wall Street Journal traced the dilemma that companies such as AT&T faced because of their technology. AT&T, for instance, owned many thousands of miles of "hard wire" (coaxial cable that moved voice messages after converting them into analog pulses across phone lines). "Point A could talk to Point B if both of them were connected by hard line. Transmitting data, however, was a different story. The early data requirements of the fax machine gave hints of how the system would hav
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n the same playing field as wire line video and telephony. These new businesses therefore face a higher degree of experimentation and redefinition in the next several years and at the same time face greater security risks (Wildstrom, 2002).
The predominant industry trend is that decreasing costs and new availability of spectrum bandwidths are leading to a major expansion of wireless telephony, accompanied by a reduction in profits. In addition to terrestrial cellular and personal communication service (PCS) offerings, there have been applications for satellite-based telephone services that would add further to the competitive offerings. Additionally, demand for wireless telephony could be stimulated if it could be used for cost-effective data access at reasonable bandwidth; the large-scale viability of this application remains to be proven.
Technology Innovations
One aspect of wireless telephony technology that is important to emphasize is that the technology is considerably more complex than traditional land based analog phone connections that were the backbone of the telephone industry. As pointed out by Wildstrom (2002) wireless networks are quickly becoming popular as wide area networks (WANs) and metropolitan area networ
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Approximate Word count = 1821
Approximate Pages = 7 (250 words per page)
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