Wireless Telecommunications Analysis

Analysis of Telecommunications Industry

The telecommunications industry is concerned with multiple communications media, including television, radio, voice communications, and broadband services ("Telecommunications," 2008). Although the market is relatively mature and has consolidated considerably due to mergers within the past 10 years ("Telecommunications," 2008), new technologies and issues have arisen that have changed the face of wireless communication, forcing key players such as AT&T, Verizon, Sprint Nextel and T-Mobile to adapt. This paper will examine the telecommunications industry's wireless sector, providing an external analysis of the general, industry, and competitor environments, dominant economic feature, driving forces, and key success factors. Attention will be given to emerging technologies and their implications for the industry.

The telecommunications industry exists within a general environment characterized by rapid technology development, a lagging global economy marked by the closing of numerous banks and longstanding retail establishments, and serious concerns about technology-related issues such as terrorism and identity theft. Globalization continues to occur, bringing together people from all parts of the globe, with greater virtual access through the Internet and increased physical aggregation resulting from offshoring activities th

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cover 140 million people by 2010, a move that differentiates it from AT&T and Verizon, which are using Long Term Evolution technology for their own 4G approach, which is expected to come in 2010 or 2011 ("Sprint Nextel," 2008). The investment in WiMAX also differentiates Sprint Nextel from its competitors by virtue of the fact that it is not tied to a local fixed-line company and is free to form strategic partnerships with the cable companies ("Sprint Nextel," 2008). Sprint Nextel's growth in its maturing market has been slow as the market's penetration nears 100% ("Sprint Nextel," 2008). The company's penetration has declined approximately 1% each quarter since 2006, despite the fact that overall U.S. penetration has increased more than 13% since then ("Sprint Nextel," 2008). Since Sprint Nextel and its competitors are offering more competitive pricing plans for their service, they are undercutting their own profits, resulting in lower average revenue per subscriber ("Sprint Nextel," 2008). Another reason for Nextel's losses is its high rate of customer churn, coupled with the fact that much of its remaining customer base is subprime-probably due to an ineffective post-merger marketing campaign as well as the hi

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