Troubled Times at AT&T
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Code : COM0075
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Region : USA
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What AILS AT&T? AT&T has come a longway since its breakup for formation of the RBOCs and becoming the largest long distance provider of the US telecommunication industry. The RBOCs Ameritech, BellAtlantic, BellSouth, NYNEX, Pacific Bell, South western Bell and US. West were formed on the basis of the regions in which they operated. RBOCs who were the only local providers have sincemerged, leaving only four regional telephone companies in the United States.After the breakup, part of AT&T's Bell Labs was split into Bellcore, which served as both R&D and the standards body for the seven Baby Bells. The company historian, Hochheiser Sheldon said, "The old AT&T—the Bell System— as a regulated monopoly had been largely insulated from market pressures for most of its history... When Survival becomes the Key By the end of 2004, the matured telecommunication industry was under consolidation in order to deal with the pressures of competition and reduced price margins as a result of offering communication services to the customers in a single bundle. David Dorman, chief executive and chairman of AT&T said, "American households are buying bundles, and these bundles are gettingmore complex and sophisticated, and we have to face the fact that without a local component, a basic voice component, we’re at a disadvantage"... |
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