Long Distance Industry & AT&T

The telephone is a ubiquitous instrument found in nearly every American home and business. It has transformed the world, effectively making it a smaller place with instant communication available between continents. Local phone service is a given for telephone customers, and residential and business customers have access to longdistance service.

Longdistance service is provided on a pay-as-you-go system with customers paying for each call they make: the more calls (or the more minutes), the greater the charge. However, the various longdistance companies have expanded this concept to include complicated pricing schedules that take into account the time of day, day of week, duration of call, type of call (business or personal) and monthly call volume. Customers can therefore be confused as to which plan actually offers the greatest advantage to them.

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and US Sprint have both entered the market and have taken 14.2 and 9.7 percent of the market, respectively, as of 1990 (Budwey, 1992, p. T38). AT&T dwarfs MCI and Sprint with an estimated $80 billion in revenues in 1995 versus $15 billion and $13.5 billion, respectively, and the company's longdistance segment will remain strong and the dominant force even after its future restructuring. The following chart illustrates market share for the three competitors (Reimer, 1995a, p. 744; Reimer, 1995b p. 758; Reimer, 1995, p. 766):
Environmental Climate Technological innovation is bringing significant change to the longdistance and telecommunications industry. Fiber optic networks and new computer technology is making it possible for communications to take on new dimensions. In addition, longdistance phone communication faces competition not only from other types of traditional phone technologies (including wireless), but also from technology such as faxes, e-mail and the Internet. Some computer on-line now enable customers to use local access numbers to call up the Internet and use microphones attached to their computers to speak with other users around the world. Other environmental considerations which AT&T needs to t
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Approximate Word count = 1907
Approximate Pages = 8 (250 words per page)

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