Equity Research on AT&T Company



Equity research on AT&T Company

Qualitative Analysis

Company Profile

AT & T - American Telephone and Telegraph is a U.S. based telecommunications which provides voice, video, data and internet tele-communication and other professional service to business, customers and government agencies. During its long history, AT & T has been, at times, the largest telephone company in the world, the cable TV operator in United States, and was even classified as a monopoly. In 2005 they join its competitor SBC Communications. Since the 2007 season to the end of the season in 2011 the company was title sponsor Team Williams F1. On May 30, 2012 the company was sponsored Team Red Bull Racing.

Product and service offered AT&T Company

The services which are offered by AT&T comprise of telephony, long distance, Internet access, cable television services. Being a Market leader, AT & T offers innovative services in the areas of data management, IP and Voice applications that are VPN, VoIP, Internet access, Remote Access, Security Services, Web Hosting, Outsourcing, The Calling Card, and Global Administration.

Customers and Products

The product and service of The AT & T differentiate as of competitive offerings by the better-quality support level issued as customer standard. Levels of services defined on the bases of significant constraint such as availability of the network and time response, guaranteed by a management and exposure from start to finish. The commitments service level standards guarantee the availability, performance and reliability of the IP backbone of AT & T to carry network traffic of each customer. A commitment to enhanced service levels can be established at the request of the customer.

Industry Analysis

AT&T Mobility claims to have the largest digital voice and data network (which it calls the allover network) in the United States. Over the past four years, AT&T Mobility has invested billions of dollars in enhancing and upgrading its GSM network infrastructure to facilitate HSDPA, an advanced 3G network. In August 2009, AT&T began the process of switching on 3G services in the 850MHz frequency band. AT&T's moves to boost 3G network capacity aim to increase data revenue.

The incredible success of the iPhone has created a small problem for AT&T. AT&T introduced the iPhone with an unlimited-data usage plan that was unprecedented in the United States. The unlimited usage has created heavy congestion on the networks that is downgrading services in some regions. AT&T's pending merger with T-Mobile would have significantly improved AT&T's network in urban areas, where the impact of the iPhone's popularity has most heavily hurt AT&T's network. However, the acquisition fell through in December 2011.

SWOT Analysis

Strengths

Oldest Largest and well- known brand of telecommunication service provider

Assets worth of 149 B with 1 million of employees working for them

Diverse business service that are wireless, television, fixed telephoney and other data services.

Largest companies in terms of revenues and sales in telecommunication

3G network is the fastest network allows people to communicate across the globe. With 57 million service lines in U.S. makes it the Largest fixed communication network

A strong developer- support Program

Weakness

Maintenance cost are ...