Modern Trends In Communication And Media Technologies - Term Paper Example

Modern Trends In Communication And Media Technologies Background Information The headquarters of American Telephone and Telegram Company (AT&A) is Dallas, Texas. AT&T is one of the largest communication companies in the world in terms of revenue, number of employees as well as customer base. The company has over 272, 450 employees working in more than one hundred and twenty five countries. It was established in 2005 when SBC communication acquired AT&T Corporation. AT&T is the leader in offering wide spectrum of handsets and devices. The company makes sure that its customers could easily shop for latest mobile applications especially for the Android Smartphones. AT&T was ranked among the 50 most admired companies in the world by Fortune Magazine. The company provides network, voice (broadband, local and long distance), directory, data and IP- services solutions to millions of its customers worldwide. AT&T have one of the most advanced and powerful global communication network frameworks in the world, which carry an estimated 18,700 terabytes of data traffic daily to nearly all parts of the world where its customers are located. The company offers voice coverage, data roaming and 3G services in more than 125 countries in the world. In addition, AT&T manages United States largest Wi-Fi network comprising of over twenty-three thousand Wi-Fi Hot Spots and offers better network and television services (U-Verse Television). The company uses HSPA technology, which has already been upgraded to HSPA + in preparation for the launch of LTE technology which is equivalent to 4G technology. Some of the large customers of the company include American Security Logistic. AT&T Company is financially sound because of billions of profits that the company generates each year for providing its services to its esteem customers. As much as the company is rated among the largest in the United States, Dowel revealed that most of its customers are unsatisfied with the services. This is because flow of information both data and voice has be hampered by data stress that threatens to overwhelms its communication network as more and more customers transmit and download high data traffic. However, AT&T has invested close to US$ 55 billion to improve its network to be capable of handling high data traffic bearing in mind that mobile data traffic doubles annually. The company also faces stiff competition from other telecommunication companies with global presence such as Verizon wireless, which is believed to be providing better quality service as compared to that of AT&T (Ezilon n.d.). AT&A strategy (TCO F) According to Foresman (2011), analysts have predicted that 16 percent of AT&T customers will switch over to Verizon Wireless network if it availed iPhone. This follows a research that was conducted on 4,050 consumers on their future network plans. They believed that when Verizon Wireless launch CDMA-compatible iPhone in February 2011, they are likely to receive better services than they get from AT&T. iPhone phones made them stick to AT&T which had poor network services characterized by poor reception, dropped calls and higher costs. Furthermore, the dissatisfied customers claimed that Verizon Wireless 3G technologies were superior to that of AT&T. The customers reacted to the statement by Verizon Wireless that it had built the capacity to handle the influx of iPhone users on its improving network. Verizon wireless is sending cold shivers to AT&T as they claim that they have higher quality network. Foresman (2011) revealed that Carton (vice president of ChangeWave) said that wireless telecommunication industry is facing a major transformational change that is likely to favor Verizon Wireless. Therefore, AT&T should not only work hard to improve its network quality but they should also assure their customers that the network shall provide excellent services than those experienced recently. Current customer survey placed the company last in terms of customer satisfaction when compared to major telecommunication competitors in the United States. This is a major blow especially as the company work harder to rebuild its network and waning reputation (Schilling 2009). The dissatisfaction is attributed to the effects caused by iPhone usage. It is claimed that iPhone act as minicomputers capable of downloading heavy data such as music streams and video. iPhone downloads result to heavy data traffic in the AT&T network bearing in mind that there were over nine million iPhone users by the end of 2009. Consequently, AT&T network became poor because of data stress and customers’ experiences dropped calls, dead connections, delayed text and voice messages as well as slow downloading speeds. Poor telecommunication is a real threat that the AT&T must not assumed if it intents to be the leading supplier of telecommunication services and products globally. According to Wortham (2009), Cisco Systems claimed that the mobile data traffic doubles annually to 2013. This means that if the company is not enhancing its network, telecommunication services over the company’s network will become worse and customers will seek services from its competitors. Therefore, there is need to tremendously improve AT&T network to prevent data traffic stress that will cause communication difficulties to the users. Upgrading of the present network has made AT&T to spend over US$55 billion between 2007 and 2009 in a bid to improve its network. Part of the money was used to erect over twelve thousand cell towers and add fiber optic connectivity to promote faster data transmission and strong cell signals. It is extremely important for AT&T to built and develop faster network and wide network spectrum to rebuild its reputation. AT&A strategy is to develop and offer reliable as well as high quality telecommunication network, products and services that are accompanied by excellent customer service. This strategy ensures that the company enables its customers to transmit data and information with less difficulty. Quality telecommunication products and services will place the company on the firm foundation of technological and market leadership (ACMA 2008). High quality products and service ensures that the company does not only become leading in telecommunication engineering but also in the market share. According to Coll (2001), telecommunication network and products should guarantee end-to-end communication. Telecommunication network should ensure that there is accurate sequencing, flow and error control to guarantee and acknowledge data delivery. Therefore, AT&T under this strategy would maintain its own network; provide proven support framework as well as customized service and products to maintain its high quality communication service. High quality services attract more customers because quality networks benefit the customers by ensuring that communication are passed and received at the right time for timely decision making. In addition, under this strategy, AT&T would be able to provide telecommunication products and services that allow for scalability. This aspect is important to both the company and its customers because it does not render the initial infrastructure obsolete with advancing communication technologies. For example, its HSPA technology can be upgraded to LTE which is equivalent to the 4G without major changes in the telecommunication infrastructure. Furthermore, AT&T ensures that its IP network enable service-awareness and intelligent control as well as aid bandwidth resource transformation to service based operations to be in line with current communication technological needs. In addition, the company’s network should be in a position to adjust to changing communication policies and guarantee differentiated services to fit into the needs of future markets. AT&A shall try as much as possible to offer rich communication service options to cater for wide spectrum of customers. This will improve customer s’ satisfaction and provides ways of magnifying company’s competitive advantage to speed up its market expansion. The company shall also offer professional customer support infrastructure. This is through offering twenty-four hour customer helpline that is toll free. Doane & Sloat (2001) explained that customers feel valued when a company provides professional services that are friendly, consistent and caring. The customer service representatives or any other person in the company who comes in contact with the customer should not give excuses when something goes wrong. Consequently, the AT&A will always work extra miles to solve problems of the customers on the spot. When problems occur in the company’s network or products, the customer representative, in the event that the problem could not be solved on the spot shall take the name and telephone number of the aggrieved client and work on the problem. The customer shall then be notified of the rectified situation in due time. This ensures that the company remains focus on the client and deliver its services to the client expectations. In general, this strategy will assure reliable and high quality communication networks to protect the consumer from loss of communication as well as economic losses that result from faulty and poor communication network. Reliable and high quality networks to be generated under this strategy will offer safe and efficient communication services that promote AT&T leadership in the provision of communication services and products globally. AT&A core competencies (TCO C) Innovation Innovation is one of the most important attributes for business entities that plan to remain at the top in the competitive landscape. Therefore, the company will endeavor to put its resources and energies in developing and improving its network and products to meet rapidly changing market needs. AT&T has worked hard to provide reliable, high quality telecommunication products and services as well as excellent customer services. Innovations have helped the company to create new solutions for customers. Currently, the company is upgrading its communication network under its integrated communication technology. The company innovated three-screen integration for its television services to enable people access television services through their mobile equipments and personal computers. The television products are U-Verse TV and DIRECTV. AT&T launched iPhone 4 in June 2010. It also launched New Music experience and announced nationwide plans for third generation microcell in March 2010. AT&T has contributed tremendously to improved communication technology globally through development of DSL and wireless technologies. The company also developed unified communications that provided single inbox for email as well as wire line and wireless voice. Wireless device that could send photos automatically to a web portal, dual-mode phones and phones that supported instant messaging was developed by the company. Reliable products and services AT&T has transformed the communication industry and its product and services including world based IP-based network capabilities, resources and assets, which are regarded best in the market place globally. Its IP-based U-Verse Television is better than the cable and DIRECTV. Its global communication network is estimated to be 99.999 percent reliable. Most of its mobile equipments work in most countries. Its network is highly secure and has the best worldwide coverage (voice, data and 3G services are found in 220, 200 and 125 countries respectively). AT&T customers are free to make wireless calls on internationally enabled mobile devices on all continents to more than two hundred and twenty countries. Furthermore, the company produces wide variety of office, cell and home phones, HDTVs, PDSa, Laptops, Blackberries as well as desktops that support uncountable messages. These communication devices can be supported by variety of telecommunication networks. According to AT&T (2009), reliable services attracted over 92.8 million subscribers to its mobile broadband network because it is one of the fastest in the United States. Strong research and development deyCentral is AT&T developers program whose mission is to create new software, devices and services to its customers. The research and development team are able to test its telecommunication application and devices using the AT&T application Beta that enable the company to receive direct feedback from its customers. To induce the researchers’ spirit, the company provides a platform to share ideas through its FastPitch event and offers prizes and cash to its creative developers. Furthermore, the company has launched innovation centres whose missions is to develop telecommunication products and services that will appeal to most of the customers to make the company retain and increase its current customer base. The company has adequate funds to finance its research and development initiatives. Good networking and collaboration To develop its technological knowledge base, it is collaborating with research institutions and research centres in the world to develop and upgrade its network system. AT&T intends to open three development centres in collaboration with Alcatel, Amdocs and Ericsson in there locations namely; Dallas, Silicon Valley and Tel Aviv. It also wishes to source out external technology form Cisco and Juniper networks. The company would be hosting suppliers and other developers in a bid to tap external technological information. Strong financial resource base The company generated net income of US$ 12535 million, US$12867 million and US$ 11951 million in 2009, 2008 and 2007 respectively. The company has a strong balance sheet. AT&T boasts of a strong financial resource base generated by company sales. Because of strong financial resource base, the company has been in a position to make capital investment worth $17.3 billion in 2009. This brings total investment that the company has made within three years beginning 2007 to $55 billion shillings to create connections that satisfy the customers. Through its strong financial base, the company can acquire other telecommunication companies; invest in research and development and undertake any other venture that adds value to the business (AT&T 2009). Telecommunication Industry Dynamics (TCO A) The Telecommunication Act of 1996 led to dramatic changes in the United States and global telecommunication industry. There are about thirty five firms operating in the United States (refer to Table 1). However, the major competitor to the AT& T is the Verizon. Global telecommunication is worth over US $1.3 trillion. China is the largest emerging telecommunication sector in terms of telecommunication capacity and the number of subscribers followed by India. China telecommunication sector experienced double digit growth in its telecommunication since early 2000. Global telecommunication industry experienced rapid development and deployment of its infrastructure in 2009 as operators invested billions of dollars following the issuance of 3G licenses (Report linker 2009). Several Central and Latin America as well as European countries are rolling wide variety telecommunication technology to accommodate upcoming generation high speed networks. According to research by IDATE (2010), the world telecom market was worth US$ 1,348.9 billion and US$ 1,340.3 billion in 2009 and 2008 respectively. Since 2007, the global telecommunication growth rates have been declining due to the challenging global financial crisis. For example, the growth rate was 5.5 percent, 3.5 percent and 0.6 percent in 2007, 2008 and 2009 respectively. The growth was 0.6 percent in 2009 because the consequences of the financial global crisis and market structural adjustment were severely felt in the same year. The global telecommunication market is dominated by mobile services that comprise of 55 percent of the total telecommunication market in 2009. Global fixed telephony, and internet and data contributed a market share of 26 percent and 19.5 percent respectively in 2009. Global mobile market boasts of over 4.6 billion customers and is driving the overall growth rate. However, the growth rate revenue in the mobile segment has been declining from 11 percent in 2007 to 3 percent in 2009. Fixed line telephony has been declining since 2002 and there was significant drop of 7 percent in 2009. Internet and data market segment continues to grow as internet market continues to surge and is driven especially by the broadband services. In less than ten years to 2009, operators in the industrialized nations such as United States, Western Europe and Japan upgraded their existing technologies to 3G that is high speed. Zack (2009) revealed that some operators in the world are installing 5G technologies while others are installing the 4G technologies. The technology in the telecommunication industry is fast changing. Some countries such as Taiwan have rolled out the 5G technology (Far Eas Tone Telecommunication Company in Taiwan rolled 5G in 2009). Most players in the United States telecommunication Verizon Wireless, T-Mobile and Sprint Nextel are rolling out fourth (4G) networks. Verizon launched the 4G in 2010 while Sprint has offered 4G services using the WiMax technology since 2008. T-mobile has launched its HSPA + phones named G2 and myTouch 4G. Several Scandinavian countries have already launched 4G LTE technology. Japan adopted LTE technology since late 2010. iPhones and smartphones have become popular among consumers because they have more powerful operating systems that support variety of telecommunication services and variety of high speed technologies (ACMA 2008). Telecommunication industry is critical to the daily operations of individuals, entities and governments. Therefore, telecommunication services are a necessity in the current century. However, it is extremely dynamic and competitive. AT&T is facing competition both within the United State and globally. Most operators offer broadband connected by fiber networks in addition to 4G technologies. AT&T Technology Sourcing and Internal Innovation (TCO D) Fast changing telecommunication industry compels AT&T to shift to product and service innovations that blends internal technology with external technology. Both internal technology and external technology is important in ensuring that the company acquires state of art technology at all times (Coll 2001). This is traditionally done through licensing agreements, strategic alliances, partnerships and acquisitions. It is not possible for AT&T to undertake this strategy as an independent entity. Therefore, AT&T acknowledges the importance of appropriately blending internal and external technology sourcing to take advantage of technology knowledge spillovers. AT&T technology is developed in the company’s laboratory while at the same time, it purchase technology from vendors such as Qualcomm, Alcatel-Lucent & Ericsson, universities and research institutions. The person in charge with internal innovation is chief technical officer who plans, implement and develop internal company’s technology. Chief technical officer is also instrumental in assessing and requesting external technological input. To enhance its internal innovation capacity, AT&T collaborates with other technology oriented companies to invest US$ 70 million to build and develop three innovation centres in Dallas, Silicon Valley and Tel Aviv in collaboration with Alcatel, Amdocs and Ericsson. This move is aimed at improving collaboration and cycle time of the project initiation and implementation. The company builds its internal innovation capacity by engaging company employees to develop telecommunication products and services that enhance flow of communication in its network. Some of internal innovation includes development and upgrading of its HSPA technology. AT&T also develops its own ATM, Frame relay IP, Ethernet Networks and world optical transport. Furthermore, the company through its internal innovation developed MPLS/IP Network and Multi-Service Edge technology. On the other hand, the company purchased innovations from external sources including companies such as Alcatel, Amdocs, Ericsson, Qualcomm and Open Feint among others. The company purchased new wireless spectrum worth $1.9 billion from the Qualcomm that makes chips. This is intended to help the company build LTE network as it proceeds to create and develop fourth generation (4G) network. Qualcomm carrier aggregated technology is appropriate because it will enable the customer to download rich data content onto their various devices. AT&T entered into a contract with Apple iPhone to enable it win millions of new subscribers to seize significant market share. The company director said Yankees and AT&T are likely to develop joint venture to create fun and safe ways of serving both AT&T and Yankees customers using Wi-Fi and cellular services. It also wishes to source out external technology form Cisco and Juniper networks. The company would be hosting suppliers and other developers in a bid to tap external technological information. AT&T also entered into agreement with Open Feint to access social gaming platform that work across wireless networks. It enables AT&T developers to develop games that allow users to compare results, engage each other and compete. These features are expensive for the company to develop independently. Finally, AT&T appointed Alcatel & Ericsson to supply access domain for the LTE deployment that is in the pipeline. AT&T Product Development Strategy (TCO E) The company product development strategy is technology improvement, innovation and product performance. This strategy focuses on developing maximum product and service performance, and functionality or function as well as best features and latest technology through innovation. However, this strategy has higher risks and cost and consume significant amount of time. Most telecommunication companies such as Verizon Wireless, T-Mobile and Sprint in the United States rolled out 4G technologies ahead of AT&T. AT&T may be far behind in marketing its 4G technology, but is not too behind in rolling the high-speed 4G technology. The company lagged in rolling out LTE technology because it wanted to make use of its 3G technology for two reasons. The first reason is to maximize use of 3G technology. Secondly, it was to create a competitive edge over its rival especially Verizon wireless. Maximum use of HSPA promotes better network coverage. Furthermore, HSPA+ technology and backhaul upgrading deliver speeds similar to initial LTE. This enabled customers to experience broadband services, which supported voice and data simultaneously under high speed platform. AT&T is developing 4G technologies and according to its Chief Technical Officer John Donovan, the company has upgraded its HSPA+ technology that can offer 14 Mbps and 21 Mbps. AT&T used 700MHz and Advanced Wireless Services spectrum to develop its LTE network. The company provides high-speed telecommunication services to over two hundred and fifty million potential customers. It has also has introduced USB modems that accommodate HSPA + speeds. The company plans to offer HSPA + mobile devices. The company did not roll out new 4G generation but rather, decided to upgrade its 3G network before it rolls out the LTE. LTE technology market evolves and matures faster as compared as compared to other technology. AT&T is a GSM carrier that use the HSPA 3G technology. This is because HSPA technology easily leads to LTE (equivalent to the 4G). AT&T upgraded to HSPA 7.2 technology (3G) technology with a downloading speed of 7.2 Mbps. The company is testing LTE in Dallas and Baltimore and expects to launch LTE network in June 2011. LTE will use carrier aggregation technology to promote downlink capacity. With carrier aggregation technology, AT&T enables its customer to download data at I Gbps during the peak hours. AT&T LTE/HSPA+ handsets offers fastest and wide spectrum of ultra fast 4G wireless broadband. The company aims at executing its own strategy and availing appropriate devices on its network for all its customers to increase company service reliability and stay ahead of all its competitors. AT&T launched “beta” programme to develop company’s HTML5 development toolkit. “Beta” helps developers to handle device platform fragmentation and stimulate application proliferation. The company also intends to develop “alpha” programme that will enable developers to create personal computer, web and mobile applications. “alpha” would enable the customers to shop and play games through their wireless devices and Televisions. The company collaborates with universities and research institutions to create and develop its telecommunication network. For example, AT&T Bell labs have been working with Rensselaer Polytechnic Institute (RPI) to improve its IP protocol reliability over wireless networks. The company has also worked with VURI researchers (Markopoulou 2010). AT&T uses students to solve practical telecommunication networks because the students are believed to have the time and drive to solve telecommunication problems. Independent researchers and telecommunication experts including Fragouli, Diggavi, and Markopoulou have been engaged by the company to solve variety of problems associated with network coding. According to Koutroulakis (2011), AT&T is working around the clock to ensure that it remains the most sort after telecommunication company in the United States. The company plans to avail AT&T Samsung Infuse (Smartphone) before July 2011. The company intends to introduce 204G Smartphone’s devices before December, 31 2011. Furthermore, the company plans to provide its customers with most mobile applications. With its enhanced technological features, it is believed that this action will help retain some of its customers who intend to switch to Verizon Wireless once its launches its iPhone before the end of this year. AT&T Strategy to protect innovations (TCO B) Business entities that plan to be successful must protect all its innovations and brand from both competitors and other business entities that intends to reap where they have not sowed. In addition, protection innovations and brand encourage business entities to invent new products in the company. To protect it innovations and brand, AT&T has implemented a comprehensive process to protect its intellectual property. The company’s patents assets are classified according to technology and are offered in lots. It has a wide variety of ways to protect every innovation. They include Non-disclosure Agreements, Intellectual Protection tools, international regulations and Intellectual Property Management Strategy. Already, the company has registered its AT&T symbol under the Madrid System. However, there are innovations that are being developed each passing day in its laboratories and they must be protected. All its new product innovations and inventions will be protected. New products will be protected under Patent Co-operation Treaty. The designs will be protected under the Hague agreement (e-Novate). The company has to protect and preserve its innovations especially the new generation innovations. This enables the company to continue innovating. AT&T has the largest intellectual property with 9,000 patents dating back to last century. AT&T owns strongest patent portfolios in the telecommunication industry. The company also manages wide spectrum of intellectual property licensing. Intellectual property licensing group together with the sales team license and selectively sells company’s patents, technology, trademarks as well as the domain names. AT&T websites contains company IP that could be purchased or licensed. However, the information is not legally binding and the company is not obliged to enter into non-written contracts. The company has sole discretion to issue certain license, sale or transfer its IP under the applicable law. The move to protect its patents, technology, domain names, data and trademarks. The company advice its clients and the public at large that the information on the intellectual property as provided in company’s websites should not be taken as to construe representation, warranty or opinion. Any person or entity interested in acquiring rights to company’s IP should seek separate and independent legal counsel to advise and represent him or her or it in the negotiations or transactions concerning company’s IP. The website information is disclaimed. Company’s brand is one of the most recognized brands across the world and has been protected. Customers and business entities understand that the company’s trademark stands for quality in the world communications, entertainment as well as technology. The company shall at all times protect its new inventions as well as its quality brand to prevent dilution by other business entities who may try to imitate company’s brand and innovations. If the company provides high quality network, wide spectrum of communication devices with wide variety of mobile applications as well as excellent customer services, it will be able to withstand the tide of increasing competition and remain at the top. Furthermore, the company will protect all its innovations and brands at all times to encourage more innovations and unfair competition. References ACMA (2008). Top six trends in communication and Media technologies, application and services- possible implications. Melbourne: Retrieved from http://www.crcsi.com.au/uploads/8d99b32f-51aa-4ee4-89d5-d7fbaa32b239/docs/top_six_trends.pdf AT&T (2009). AT&T Inc. 2009 Annual Report. Dallas: AT&T publications. Coll, C. E. (2001). Telecom 101 : Telecommunications for Non-engineers. New York: Teracom Training Institute. Doane, S.D., & Sloat, R. D. (2001). Excuses, excuses, excuses --: for not delivering excellent customer service - and what should happen! Amherst: Human Resource Development. DOWELL, A. (2010). Consumer Reports Says AT&T 'Worst-Rated' U.S. Carrier. Retrieved from http://online.wsj.com/article/SB10001424052748704156304576003423395003 8. html e-Novate. Supporting Innovation in SMEs: Innosupport Survey. Surrey :The Surrey Institute of Art and Design University College Ezilon (n.d.). Telecommunications. Retrieved from http://search.ezilon.com/united_states/business/telecommunications/index.shtml Foresman, C. (2011). 16% of AT&T customers ready to jump ship for Verizon iPhone. Retrieved from http://arstechnica.com/apple/news/2011/01/survey-att-customers-ready-to-jump- ship-for-verizon-iphone.ars IDATE (2010). World Telecom Services Market 2010. Retrieved from http://blog.idate.fr/?p=133 Koutroulakis, S. (2011). AT&T Samsung Infuse 4G: Official and bragging Amazing specs. Retrieved from http://androidcommunity.com/att-samsung-infuse-4g-official-and- bragging-amazing-specs-20110105/ Markopoulou, A. R. (2010). A Collaboration: Network Coding + Reliability. Retrieved from http://www.research.att.com/articles/featured_stories/2010_10_slider- stories/201010_collaboration.html Report linker (2009). China Telecom Industry Forecast to 2012. Retrieved from http://www.reportlinker.com/p0147089/China-Telecom-Industry-Forecast-to.html Schilling, A.M. (2009).Technological Innovation (2nd ed.). New York: McGraw-Hill Irwin Wortham, J. (2009). Customers Angered as iPhones Overload AT&T. New York TimesTop of Form. (2009, September 2). Retrieved from ttp://www.nytimes.com/2009/09/03/technology/companies/03att.html?_r=1 Zacks (2009). Telecom Industry Outlook - No. 2010. Retrieved from http://finance.yahoo.com/news/Telecom-Industry-Outlook-No-zacks- 4197056938. html?x=0&.v=1 Appendices Table I- List of competitors Uniden Bellsouth Honeywell Sprint Nextel Carroll Communications A-Tel Aastra T-Mobile CenturyTel AT&T Telecom CTS Brilliant THTWeb Mobile Billing Telstra International Avaya Verizon Surf Side TotalTelecom XO Communications Qwest PTI Bell Phones Paging Concepts Paragon Communications TCS Satworx Intervale Alcatel Lucent Allied Communications TDS VTech Hosted IVR Nortel Networks TSR VocalNet Netfast Telephone Systems Source: Ezilon Search Read More