AT&T: 5G Development and Streaming Services

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Table of Contents

Introduction
5G Development
Streaming Services
Industry Overview
Conclusion
References

Introduction

The last step of the organizational analysis is the implementation of the recommended changes. As mentioned in the SWOT and SFAS analyses, AT&T emphasizes sustainable development as the primary objective of the firm. The executives focus on both environmental and social factors, such as the reduction of GHG emissions and diversity (AT&T, 2021). Nevertheless, according to the TOWS analysis, these methods might not be sufficient to maintain the advantageous position in the market, and other strategies are required. From these considerations, 5G development and the expansion of streaming services are chosen as the appropriate methods to strengthen the firm.

5G Development

At present, most large telecommunication companies are exploring the potential capacity of the 5G networks and how they could be applied to gain an advantageous position in the industry. AT&T, Verizon, T-Mobile, and Sprint are the most notable organizations pursuing this objective (Crotty & Strover, 2020). According to the latest rankings from Opensignal, T-Mobile has a considerable advantage in 5G coverage and speed (Rizzato, 2021). The three illustrations below demonstrate the current metrics of 5G development:

Figure 1. 5G Availability (Rizzato, 2021).

Note. Availability demonstrates the percentage of total customers of the company connected to 5G services. In other words, it is a relative metric that does not calculate the objective number of clients.

Note. Reach is the scale of 0-10, which demonstrates the overall availability of the 5G services, depending on the locations in which users attempted to connect to the network.

Note. Video experience metric shows the overall evaluation of real-time streaming services by the customers of the respective company.

According to Figure 3, AT&T holds the top position in 5G video experience and is a close second in the rating of 5G Games Experience (Rizzato, 2021). As mentioned in the TOWS analysis, 5G has a large number of advantages over previous generations, specifically in the entertainment segment. From these considerations, it is possible to implement a 5G development strategy with a focus on video and game experience.

Currently, the entertainment industry is rapidly expanding, and the video, game, and music sectors are some of the most profitable areas to invest in. Furthermore, the habits and preferences of the customers are continually changing, and the most adaptable company might have immense success by implementing 5G technologies (Caruso et al., 2019). For instance, 5G might be applied to an innovative approach in gaming, such as interactive games, which require the simultaneous connection of several devices (Caruso et al., 2019). Furthermore, 5G does not only provide better speed and stability compared to previous generations but is also more cost-efficient and allows optimizing infrastructure (Caruso et al., 2019). These findings imply that the continual shift to 5G from LTE might yield a competitive advantage for the company in the entertainment industry.

Consequently, it is essential to discuss the contemporary means of technological advancement and how the said strategy might be applied to practice. One of the potential methods to utilize 5G is the Quality and Experience (QoE) modeling framework for video streaming (Nightingale et al., 2018). At present, approximately 73% of all internet traffic is utilized for streaming services; therefore, it is vital to improve the experience and satisfaction of the customers in this area (Nightingale et al., 2018). From these considerations, the 5G-QoE framework is an efficient tool to enhance the quality of high-end services, such as real-time streaming and ultra-high quality videos (Nightingale et al., 2018). The primary advantage of the model is the capacity of flow and video sensors to detect any type of anomaly (Nightingale et al., 2018). In other words, the simultaneous usage of several quality control frameworks allows identifying any potential frame drops, delays, and lags and fixing them before the customers notice. Potentially, it removes any type of possible inconvenience during ultra-high quality video streaming and significantly improves the satisfaction of the customers.

Evidently, the development and expansion of the 5G networks would require considerable funding and comprehensive research. For instance, the implementation of 5G-QoE into the current infrastructure entails the changes of virtualization, multi-tenancy, cloud computing, software technologies, and other designs (Nightingale et al., 2018). Therefore, while the ultimate effect of 5G-QoE might be highly beneficial for the company, AT&T needs to invest significant funding into the development.

Streaming Services

The second recommendation concerns the highly competitive market of streaming services headed by Netflix and Amazon Prime. Compared to the giants of the industry, HBO Max is a relatively new and undeveloped platform. Nevertheless, the current expansion rates are promising, as AT&T claims that HBO Max will reach approximately 150 million subscribers by 2025 (Hayes, 2021). The executives of AT&T declare customer relationships as the core focus of the HBO Max development (Hayes, 2021). As a result, loyalty programs, longer subscription periods, and versatile pricing strategies are prioritized. However, there are certain challenges obstructing the development of the platform.

Pricing is one of the most significant factors that affect the choice of customers in the video streaming industry. Consequently, the pricing strategy implemented in the United States might not be appropriate for the expansion in Europe. Experts display uncertainty concerning this factor since it is complicated to adjust the rates in various regions (Shah & Rasay, 2021). For instance, the current instance of international HBO services – HBO Go – regulates the prices based on the country: approximately $5 for Eastern European regions and $13-$16 for Nordic areas (Shah & Rasay, 2021). On the other hand, HBO Max charges $14,99 in the United States to maintain its financial health (Shah & Rasay, 2021). As a result, expansion to the European streaming market with an identical pricing strategy might be profitless. In such cases, the company needs to attract new customers by implementing an effective sales strategy. Ultimately, seasonal deals, prolonged free trial periods, and collaboration with established organizations might significantly facilitate the expansion process.

Industry Overview

As mentioned before, the primary competitors of AT&T in the telecommunication industry are Verizon and T-Mobile, while Netflix overwhelms HBO Max in the streaming services. The companies continually implement innovative strategies, organize technological research, announce numerous sales, and effectuate subscription policies to improve their positions in the market. Ultimately, a large variety of methods have been tested already, and there is little prospect for new opportunities. However, as mentioned before, 5G development is a relatively innovative area of research, and it is possible for AT&T to take the leading position in this sector.

Conclusion

The TOWS analysis revealed several potential opportunities for AT&T to improve its financial condition and competitive presence, namely, 5G development and the expansion of streaming services. The current report proposes technological research of 5G and regional sales as the primary means of organizational expansion. Innovative methods, such as 5G-QoE, might significantly improve the quality of video streaming services and enhance customer relations. On the other hand, thorough planning of regional sales and free trial policies is going to attract new customers in the European region. Focusing on these areas of development, AT&T might gain a competitive advantage in the market and take the leading position in the telecommunication and entertainment sectors.

References

AT&T. (2021). Measuring our impact: 2020/2021 progress toward our goals.

Caruso, G., Nucci, F., Gordo, O., Rizou, S., Magen, J., Agapiou, G., Trakadas, P. (2019). Embedding 5G solutions enabling new business scenarios in media and entertainment industry. 2019 IEEE 2^nd 5G World Forum (5GWF), 460-464.

Crotty, R., & Strover, S. (2020). Ubiquitous nationwide 5G? Examining the implications on nationwide promises. TPRC48: The 48^th Research Conference on Communication, Information and Internet Policy, Victoria Circle, United States.

Hayes, D. (2021). HBO Max will hit 120m to 150m subscribers by 2025, with AVOD tier launching in June, AT&T says. Deadline.

Nightingale, J., Salva-Garcia, P., Calero, J. M. A., & Wang, Q. (2018). 5G-QoE: QoE modelling for ultra-HD video streaming in 5G networks. IEEE Transactions on Broadcasting, 64(2), 621-634.

Rizzato, F. (2021).5G user experience report July 2021. Opensignal.

Shah, S., & Rasay, S. J. (2021). HBO Max may struggle to charge a premium throughout Europe – experts. Spglobal.

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