AT&T

Table of Contents

COMPANY OVERVIEW4

KEY EXTERNAL DRIVERS4

Number of cable TV subscriptions4

Number of mobile internet connections5

Urban population5

Value of private non-residential construction5

National unemployment rate6

Demand from telecommunications6

CURRENT PERFORMANCE6

BUSINESS VS. RESIDENTIAL7

MERGERS AND ACQUISITIONS8

ABANDONING THE WIRE8

REVENUE GROWTH9

INDUSTRY OUTLOOK9

CONTINUED EXTERNAL COMPETITION10

RECAPTURING ITS CUSTOMER BASE11

REVENUE OUTLOOK12

INDUSTRY LIFE CYCLE12

COMPETITIVE LANDSCAPE14

Market Share Concentration14

Porter 5 Forces14

Threat of New Competition14

Threat of Substitute Product or Services15

Intensity of Competitive Rivalry17

Bargaining Power of Customers18

Bargaining Power of Suppliers18

Industry Globalization20

Capital Intensity21

Technology & Systems21

Regulation & Policy23

Industry Assistance26

KEY STATISTICS27

SEGMENTATION30

Products and Service Segmentation30

GSM30

CDMA31

Major Market Segments31

INDUSTRY CONCENTRATION32

Industry concentration is low32

GEOGRAPHIC SPREAD34

Europe34

North America35

North Asia36

India and Central Asia37

Economies of scale39

Convergence and increasing external threats40

WiMAX41

Capacity Concerns42

Global Revenue43

References45

AT&T

COMPANY OVERVIEW

AT&T Inc. is a holding company incorporated in 1983 and based in Dallas Texas that through its numerous subsidiaries is a leading provider of telecommunications services in the United States and one of the largest telecommunication service providers in the world. As of 2012 the company operates as the incumbent local exchange carrier (ILEC) in 22 US states and has about 256 000 employees.

The company divides business into four segments: wireless wireline advertising solutions and customer and corporate information services. Industry-relevant activities are grouped primarily in the Wireline segment which includes subsidiaries that provide both retail and wholesale communication services domestically and internationally. Wireline services are further divided into three product categories: voice data and other. In 2011 the Wireline segment accounted for about 47.0% of AT&T's revenue and about 45.0% of its operating income. It also served about 19 million retail consumer access lines 16 million retail business access lines and 2 million wholesale access lines.

KEY EXTERNAL DRIVERS

 Number of cable TV subscriptions

Not only a direct competitor to this industry for the provision of internet voice and broadcast video cable TV's coaxial cabling is a superior medium to this industry's twisted-pair copper wiring in terms of bandwidth and reach. This driver is expected to increase over 2012.

Number of mobile internet connections

Perhaps the single largest threat to the wired telecommunications industry is the wireless telecommunications industry. As mobile internet takes hold and improves in quality many consumers may feel wired internet service a redundant expense and eliminate their landlines altogether. This driver is expected to increase in 2012 representing a potential threat to the industry.

Urban population

Due to the limited range of twisted-pair copper and the high cost of deploying optic fiber wired telecom firms are limited in which customers they can target by population density. Urbanization particularly from single-unit detached homes to multifamily units can make wired telecom providers' products much more cost effective to deploy and purchase. This driver is expected to increase through 2012 representing a potential opportunity for the industry.

Value of private non-residential construction

Growth in office construction is a boon for this industry as offices are typically of sufficient density and demand to warrant the extension of optic fiber to their locations. Furthermore the commercial sector has so far demonstrated a preference for the reliability and quality of single-circuit phone lines versus cheaper alternatives like VoIP and it has not demonstrated a desire to replace landlines with mobile lines preferring instead to maintain both ...