Category: AT&T

Executive Summary

AT&T is an American multinational company that offers telecommunications solutions to retail and enterprise consumers. The company is one of the largest employers in the United States and provides competitive salaries and benefits among the top Fortune 500 companies. This paper reviews the human resource management (HRM) issues as they relate to best practices of the professional and particular strategies of the company.

Most notably, AT&T manages its workforce through a HRM team that consists of the corporate executive of the company, the human resource department staffs, the strategic business units heads, and members from delivery and business support, and production.

The organizational inclusive team arises out of the companys strategy to blend its human resources (HR) goals with its other business goals. As a result, its various departments and divisions all work together to implement employee growth and development programs. The company has an explicit diversity and inclusiveness program for its people.

It recognizes employee cultural differences, occupational differences, and other sources of uniqueness that can help it better deal with its customers. Consequently, it actively promotes the inclusiveness of people with diverse backgrounds to its workforce so that it benefits from their unique perspectives. This includes people with disabilities. Sexual harassment is one of the localized HR issues that AT&T has to deal with.

Beyond that, there are universal cultural differences that will always be at play in the company. In addition, there are different categories of people making up the organization, such as it leadership, retirees, active workers, and their dependents who all act as stakeholders to its HR policies.

The paper highlights the strategies used in staffing, employee benefits, and wages used by AT&T and offers recommendations on areas of HR policy improvement.

Brief history of AT&T

AT&T is a multinational telecommunications company that started in America and has its headquarters in Texas, USA. Alexander Graham Bell founded it and the initials in the name stand for American Telephone and Telegraph. The companys mission is to connect people, irrespective of where they are.

To achieve its goals, AT&T continuously innovates as it operates in the communication and entertainment industry. AT&T today has more than 28,000 workers located throughout the world. Senior leaders at AT&T lead the diversity initiatives for employees that aim to grow the company by servicing its consumers well.

Main products or services

AT&T continues to evolve and specializes in consumer and enterprise technological solutions. It provides data, video, and mobile services solutions, which include business within cloud, security, and mobile business features.

The company has 250 million mobile customers. The company operates a cellular service in the United States and Latin America. It also offers video subscription services and TV through fiber optic lines and satellites.

Human resource (HR) concerns and features at AT&T

As a multinational organization, AT&T has staffs from diverse cultural backgrounds. The company faces a challenge of regulation compliance, given that employees are social in nature. They may show biases towards race, religion, sex, nationality, and other sources of prejudice in the workplace.

While the company has relevant policies, it has to work constantly on specific cases of ethical violations that depend on different cultural interpretations. The staff diversity program at AT&T is part of the leadership priorities and business goals that include workforce inclusion, among other features.

The company adopted a program known as the Chief Diversity Officer Forum in 2009 to help it integrate and gain from enterprise-wide activities that would help it remain competitive as a company that embraces diversity. AT&T ensures that all employees are able to connect with their world through the forum that meets quarterly and with other initiatives of inclusion.

Diversity in this case is not only cultural, but it also includes communication challenges and medical disabilities that make employees different. In fact, AT&T actively recruits students with disabilities in one of its student career programs. Within the organization, various training programs are available for employees at any level to use in advance their skills, which include tolerance and understanding of cultural differences.

Employee harassment

Sexual harassment is one of the localized issues that the company deals with constantly as reflected in its codes of conduct for all employees (Stephenson, 2014). The issue arises because of gender difference among its employees. AT&T was the subject of several lawsuits on sexual harassment, where employees were complaining of the companys failure to intervene and prevent the harassment.

On its part, the HR management has always insisted on valuing employees and not tolerating any sort of harassment that could arise in the organizational setting. In 2010, there was a sexual harassment issue reported by two former employees who worked at the retail division of the company.

The complainants mentioned the use of derogatory language and behavior, together with inappropriate description of female features of employees and customers. There was also the question of being sexually suggestive in remarks to employees who were breast-feeding.

In its defense, the company management argued that the employees received adequate information about potential remarks that colleagues would make and it was the duty of the victims to let their colleagues and supervisors know their personal boundaries. Unfortunately, the particular incident also had features of employee victimization after raising the complaints.

The victim employees did not receive any consideration for promotions and the company did not take any action against the harassment, which forced them to resign as a way of avoiding the humiliation (Beaven, 2010).

While much of the harassment account comes from the victims and there is a chance of exaggeration, it still brings out a localized issue that AT&T has to deal with due to diversity in the workplace (McDonald, Charlesworth, & Cerise, 2011).

Union relations

AT&T is one of the largest employers in the United States and it protects middle class careers with its competitive wage and benefits programs. The company works harmoniously with its various employee unions, which bargain for fair contracts that safeguard the middle-class careers of employees.

On its part, the company ensures that any terms of agreement allow it to maintain necessary flexibility, which is paramount in the fast-paced technology centered telecommunications industry.

Salary and benefits issues

Even as the company works towards the provision of competitive wages and benefits, it grapples with high costs of providing medical benefits to its employees in the United States. The company acknowledges that since 2004, medical costs per employee increased by 54 percent. On the other hand, nationwide inflation rates increased to 15 percent in the same period, despite the sharp increase during the recession in 2010.

The rapid cost of employee medical benefits is responsible for the decline in the amount that firms are providing to their employees as medical benefit. Nevertheless, AT&T is still among the companies that continue to subsidize high quality health care. The medical benefits go to active employees, dependents, and retirees.

As of 2012, AT&T provided work contracts for its technician staffs with a total compensation of $90,000 in wages and $43,000 in benefits. A consequence of being one of the best paying companies in America is that the company receives thousands of jobs applications annually (AT&T, 2012). In 2011, the figure stood at 190,000 applications. In future, AT&T does not plan to reduce wages, even as the cost of benefits goes up.

Currently, its benefits program covers medical, dental, vision, flexible spending account, health reimbursement accounts, pension, savings, life insurance, leaves of absence, long-term care, disability, adoption reimbursement, employee assistance programs, commuter benefits, and voluntary benefits (AT&T, 2012).

The different categories of benefits help in bridging the socio-economic gap among employees to put them at a relatively equal position, despite their various job capacities and salaries. For many of the jobs at AT&T, total wages and benefits exceed the national median household income. The company recognizes the similarity of its employees demands for better compensation, irrespective of their background or disability situations.

It, therefore, places health benefits as a key feature of its employee compensation program. The objective here is to offer high quality cost effective coverage in health care that its employees and their families would enjoy without discrimination.

A challenge for AT&T is the growing retirement bill for the company. By 2011, it had about 335,000 retirees who were eligible for receiving benefits from the company. The company was able to meet its obligation through its ongoing pension plans, which makes it one of the 34 percent of the Fortune 500 companies that are still carrying the program.

At the same time, AT&T is among the 26 percent of large employers in the United States that still offer health benefits. The figure significantly reduces annually as many companies face challenges of increased business costs. The company gives its call center workforce about 25 days off annually, exclusive of holidays and vacations. At the same time, it provides 34 paid days off for its employees.

On average, employees will enjoy 60 days off and still receive their wages for the days off. As a result, the company generates a high attachment effect on its employees and compels them to identify more with their similarities as colleagues, rather than their differences in education, job, and cultural backgrounds.

Global HR issues

In the global context, diversity issues of HR are culture and gender related. Cultural diversity is not just the Western context of other people being different in their perception; instead, it encompasses everything that makes people similar and different from one another.

Diversity, therefore, concerns race, gender, age, disabilities, and sexual orientation. AT&T seeks to find the best and brightest employees and, in many cases, they will happen to have differences among them. They could be African, Asian, and Hispanic European, male, female, and gay. Therefore, depending on the category used to analyze diversity, any employee could be a minority.

The biggest challenge is the expectation of other cultures to understand the cultural orientation of AT&T, given that it is an American multinational (Ivancevich & Konopaske, 2013).

There are underlying cultural considerations rooted in American context that the company embodies, which are under constant revision. AT&T has to respect its workers diversity; it does this by valuing its people wherever they are in any of its global operations.

The message that the company is putting out is that it is ready to work with people from all backgrounds by providing an environment and culture that help them work productively together.

Some of the notable ways that inclusion strategies happen at the company is through combined individual and team exercises, role playing, engagement with education material, and work through diversity issue to grow the employee appreciation of their differences and how the contribute to the groups goals.

The systems and culture at AT&T work together such that the respect message translates to all actions and company decisions concerning workers. The companys HR leadership acknowledges that realizing its diversity and inclusion goals does not happen in a fortnight. In that regard, it keeps on seeking ways to improve.

Rather than export its approach whenever it encounters new diversity challenges, the company chooses to understand first the necessary training needed to appreciate the underlying differences (Koster, de Grip, & Fouarge, 2011).

AT&T devises a blend of its culture and the foreign one to foster inclusion after finding out as much as possible about the differences, which could be cultural. Consequently, the company changes as much as it influences its workforce to change into embracing more heterogeneity.

Recruitment at AT&T

As AT&T seeks to hire the best, it ensures that it remains near the top in students list of potential employers. The organization does that by building strong collaborative relationships with faculty and staffs of higher learning institutions. It capitalizes on opportunities to be part of the students classroom experiences where it is able to highlight its orientation towards innovation and technology.

The company relies on a dedicated college recruitment staff to bring in fresh graduates for its full time employment opportunities, as well as internships (AT&T, 2012). Getting fresh graduates into the employee development programs lets the company shape their cultural orientation to fit the companys ideal culture that is inclusive of peoples differences due to their diversified backgrounds (Daspro, 2009).

Apart from specific job skills for filling particular vacant positions in the company, the human resource department considers the following attributes for every job or internship candidate.

It looks at enthusiasm about technology and innovation, interest in communications, entertainment and information technology, a commitment to honesty and integrity, and the ability to respect and thrive in a fast-paced diversified work environment.

As the company develops and reacts to changing consumer demands, it is in constant need of professionals to fill its emerging areas of business. For example, in recent years, AT&T has been hiring individuals with Internet Protocol (IP) expertise, and Radio Frequency (RF) protocol engineers and micro controller.

Many of these professionals do not necessarily come from dominant American backgrounds of education, culture, and work. They must, therefore, pass through various induction programs to fit within the AT&T human resource.

AT&Ts human resource management team

The HRM team at AT&T makes up the HR leadership council, which works are the key driver of all other HRM practices.

The team includes corporate executives of the company, the human resource department staffs, the strategic business units heads, and members from delivery and business support, and production because they make up most of the AT&T workforce. The HRM team is interdisciplinary and it links corporate and business-unit HR activity (HR transformation at AT&T Consumer Services, 2002).

Human resource strategy of AT&T

After the split of the organizational business interest into AT&T, Lucent technologies and NCR cooperation, each company conducted its HR transformation using similar steps. At AT&T, the transformation began with the determination of business needs such as customers, growth, and cost reduction. It then reviewed the organizational structure, dynamics, and systems before defining the strategic implications of HR.

The implications were continuous learning, team working, and empowerment. After that, AT&T worked on identifying HR systems that would support organizational, cultural, and structural changes (HR transformation at AT&T Consumer Services, 2002).

Part of managing HR as a business process involved the leveraging of HR capability using leading edge practices like leadership, staffing, education, and performance management. Lastly, the HRM strategy lately has been to devise high-level HR initiatives that cater for the organizations special needs, such as downsizing and workforce planning (HR transformation at AT&T Consumer Services, 2002).

The AT&T HRM strategy constantly shifts to reflect changing demands of the business, such as rapid technological convergence in broadband telephony.

Consequently, the organization seeks to match the workforce capacities, skills, and capabilities with the emergent customer services. A key feature that affects the success of the HR strategy is the deployment of relevant staffs to positions that help the organization to meet its customers expectations.

AT&T has a devolved employee education framework that places line managers in charge of business-wide reviews of skill gaps. With HR as part of every business process at divisional and regional levels, the HRM team is able to deal with everyday workplace issues. The aim of the education program in the company is to design ideal features that focus on cooperation in work practices with job sharing and remote working.

It supports pilot schemes that the leadership council introduces to ensure that the workforce has adequate work-life balance. At the same time, it seeks to invest in employees such that they are well educated and receive personal support whenever it is necessary. Lastly, the HRM team aims to influence decisions on production, work content, job content, and technology.

Recommend actions the human resource team should take at AT&T

AT&T needs to create a complaints resolution division that would cater for employee misgivings that relate to any part of its HR policies (Banfield & Kay, 2008). For example, the company was accused of neglecting employee concerns about harassment, even though it has explicit policies against the same violation.

The incident and its resolution suggest that the company has good intentions, but it lacks the necessary mechanisms of ensuring that employees adhere to the regulations. As much as AT&T strives to promote inclusion and tolerance, it cannot effectively affect employee conduct without appropriate disciplinary measures.

The company must recognize the power that supervisors and line manager hold against their subordinates. Any abuse of the power constitutes discrimination on job scale differences and can lead to the manifestation of other prejudices among employees.

Within its HR department, the company needs a policing unit that has enough influence and executive leadership mandate to recommend or implement disciplinary measures that would include reprimand and termination (Bratton & Gold, 2012).

The positioning of employees within the organization in leadership and management capacities should reflect their maturity in the inclusion values of the company and personal respect towards peoples differences.

At the same time, those in charge of shaping the companys internal culture must be represent its ideals well beyond the business centered qualities of being innovative and willing to go the extra mile in delivering customer solutions (Ananthram, 2013).

The critical points for AT&T are its service centers and retail centers where employees directly interact with customers and experience diversity in their interpersonal relationships. Understanding the emotional context of their labor and its implications in their behavior is important.

Already, the company demonstrates its concern by providing adequate off days and paid leaves for workers such that they have better work and life balance.

Beyond that, AT&T must continue its training programs, especially on sociological aspects of the work environment and its challenges to equip its employees with necessary coping abilities for high stress situations. This would prevent future incidences where they let emotions affect their behaviors, their colleagues and customers (Gianfranco, 2013).

Related case law precedence

At AT&T, cultural diversity is one of the business goals that emphasizes on the understanding of not only its customers, but also the cultures of its employees and customers. AT&T has to comply with a number of legal requirements that govern human resources in the United States.

Among the notable legal regulations governing the conduct of AT&T human resource management are the Equal Pay Act of 1963, Age Discrimination in Employment Act of 1967 (ADEA), Title VII of the Civil Rights Act, Titles I and V of the Americans with Disabilities Act of 1990, and the Civil Rights Act of 1991 (Engstrom, 2011).

The AT&T HRM team runs a compliance program that ensures the companys business strategies do not violate any legal statute. The HRM staffs have relevant experience and they review the existing HR policies and implement new policies.

Implementation includes the supply of updated work manuals to employees on important issues. Beyond that, it must also include listening to managers and employees and understanding compliance risks and opportunities (Ananthram, 2013).

Concluding thoughts

AT&T does a commendable job of fostering employee cohesiveness and contributing to personal development and career advancement for its diversified workforce. The company goes out of its way through various HRM initiatives such as employee benefits programs to ensure that it not only remains innovative, but also protects the middle class careers of its employees.

The attachment of HR goals with overall organizational objectives allows the company to sustain its HR programs in the long term. Consequently, it emerges as one of the favorable places to work in among the Fortune 500 companies in the United States.

The accuracy of the paper and its analysis is limited to the company and scholarly sources consulted. The biasness exhibited in any of the consulted secondary materials may, unfortunately, extend to the findings presented in this paper.

Personal reflection

From this assignment, I learned that despite a companys best efforts to influence ethical and cultural inclusive behaviors for its employees, there could still be situations that challenge that position. I also noted that the alignment of HR goals with other business goals is beneficial to the overall growth of the company, given that people are the main contributors to the attainment of business goals.

Putting people first and respecting their differences is a good strategy for excellence. However, the strategy cannot work without adequate mechanisms for implementing it. In fact, every goal of HR management needs space and other resources to implement; otherwise, the organization will still grapple with problems of managing its people.

References

Ananthram, S. (2013). Challenges and strategies for global human resource executives: Perspectives from Canada and the United States. European Management Journal, 31(3), 223233.

AT&T. (2012). AT&T compensation in a competitive marketplace. Web.

Banfield, P., & Kay, R. K. (2008). Introduction to human resource management. New York, NY: Oxford University Press.

Beaven, S. (2010). Two former employees sue AT&T claiming harassment and retaliation. The Oregonian. Web.

Bratton, J., & Gold, J. (2012). Human resource management: Theory and practice (5th ed.). London, UK: Palgrave Macmillan.

Daspro, E. (2009). A cross-cultural comparison of multinational firms recruitment practices in Mexico and the United States. Latin American Business Review, 10(1), 1-19.

Engstrom, D. F. (2011). The lost origin of American fair employment law: Regulatory choice and the making of modern civil rights 1943-1972. Stanford Law Review, 63(5), 1071-1143.

Gianfranco, W. (2013). Employee emotional labour and quitting intentions: moderating effects of gender and age. European Journal of Marketing, 47(8), 1213-1237.

HR transformation at AT&T Consumer Services. (2002). Human Resource Management International Digest, 10(5), 6-11.

Ivancevich, J. M., & Konopaske, R. (2013). Human resource management (12th ed.). New York, NY: McGraw-Hill Irwin.

Koster, F., de Grip, A., & Fouarge, D. (2011). Does perceived support in employee development affect personal turnover? The International Journal of Human Resource Management, 22(11), 2403-2418.

McDonald, P., Charlesworth, S., & Cerise, S. (2011). Below the tip of the iceberg: Extra-legal responses to workplace sexual harassment. Womens Studies International Forum, 34(4), 278-289.

Stephenson, R. (2014). AT&Ts code of business conduct. Web.

The article titled ‘AT&T outage puts more heat on network reliability’ by Charles Manson, Washington editor, was published originally by Telephony, Chicago on September 23, 1991, although it could still be found online on sites like ProQuest. The article is also published by informa for scholarly use. The genre of this article is brief news. As this article is an old article not much can be found about the author credentials or the publishing company. But being found on Informa shows that it is a reliable source. This article could be used for case studies to show the information technology disasters that happened in the past and how to avoid them from rehappening again. It describes how the error that cause the network outage to happen, the damage it caused, until it was resolved. The main theme and purpose of this article is to inform and explain what happened from the first steps of failing equipment to the steps of restoring all the services. The lesson learnt from the article is that a small mistake could lead a big problem if not dealt early and it also teaches to be extra careful when working. The article gives an idea of what happened from the point of the outage that struck AT&T network, how it affected air traffic, the exact time it happened, and the resolving of the power supplies that restored the network.

A conceivably life-threatening blackout that struck AT&T’s network in New York on Tuesday, and caused the shut-down of the air traffic in the country’s bustling Northeast corridor, has brought questions about the reliability of the country’s mobile network. This article talks about the event that happened to AT&T. Representative Robert Wise, Chairman of the House Government Information, told Telephony that he was sending a message FCC (Federal Communications Commissions) demanding full investigation about how a failure in power supply would affect air traffic and communications of NYC (New York City) and why it is depending on only one carrier. The congress heard on this topic of network reliability, already had a plan which will be held in fall, now it will be more of a urgent topic. According to Capitol Hill, questions that will be discussed include worries that government regulations local and international telecommunication industries, like price cap and may be motivating carriers are cutting back on network investment, a believe that carriers are strongly denying.

On Tuesday 10 A.M., AT&T’s normal long-distance traffic was distorted, the blackout additionally prompted the shut down of the region’s three large airports, since it influenced private lines leased by the Federal Aviation Administration (FAA). Those lines convey important communication between FAA facilities in New York. The blackout happened during the busy evening where national/international flights fly in/out of New York/New Jersey area. The cause of the disruption was failure of AT&T’s lower Manhattan switching office was led to AT&T’s power supply system, filing of three rectifiers, and three employers who did not react to an alarm. The failure eventually influenced three out of five AT&T’s 4ESS switches in NYC, according to AT&T spokesperson.

According to AT&T, on Tuesday 10 A.M. the problem began that caused failure to Thomas Street switching centre. The centre was switched to AT&T’s generated power from the Consolidated Edison commercial power supply. According to what AT&T said, during AT&T switched power, the rectifiers failed, which caused immediate switch to back-up batteries. Technicians overseeing the system did not see several alarms and did not go to assess the problem that would have enabled them to find the issue prior. Routinely, AT&T technicians try to convert back to commercial power at around 4:30 P.M., it is then when they find out about the failed rectifiers, which kept them from utilizing normal electrical power. The batteries that usually have life expectancy of six hours are nearly drained. About twenty minutes later around 4:50P.M. the batteries depleted. Workers who were solving the problem for three hours, 30% of services where restored. By midnight, mostly all services where restored, AT&T said.

The reliability of US’s telecommunication network was doubted again after a failure happened in AT&T equipment switches office in lower Manhattan. It was found out that the failure was due to an internal power supply system, failed rectifiers, and three employees not responding to alarm. Other than disrupting normal long-distance telecommunication traffic, it also affected private lines rented by the FAA, shutting New York three busy airports. Robert wise, is concerned FCC is not doing enough about US’s reliability and demanding full investigation. Other in Capitol Hill are worried government regulation of carriers are encouraging carriers to cut back on network investment.

This article is useful as it describes an disaster that it could be learnt from and avoided. It teaches us that we should be very careful and aware. If not, it could cause a disaster, as an example if the three technicians saw the alarm they could solve the issue. Another lesson it teaches us is that a small mistake could lead to a bigger mistake, for example the failed rectifier led to loss of telecommunications and disruption of air traffic. It also teaches us that we should not only depend on one support, if there was another support the air traffic could have functioned normally. There are some parts of this article I would recommend to change, first of there is not an exact date of when the event happened written in this article, it also does not talk about how it was resolved it only tells us about the time it was resolved. Overall, this is a good article for case study as it shows us the issue, human error, catastrophic disaster happened, and how it could be avoided.

Using emails has been in trends since the beginning of the first email platform. With time, emails made their place as an official mode of communicate. People frequently depend upon emails to send and receive critical data, therefore picking a right webmail service platform is necessary. Each day a new email service launched in the market but the AT&T attracted masses of eyes. This email service has many features which other platforms fail to offer.

Some of the Remarkable Features Offered by AT&T Email

1. Attractive filters: searching the email, contact, events and other items in your AT&T inbox is pretty useful as AT&T is laden with a wide variety of handy filters;
2. Easy to deal calendars: the inbuilt calendars in AT&T emails is likely to print, subscribe, create or add the calendar;
3. Create or use filters in no time: creating folders gives easiness to deal with incoming emails using AOL;
4. Manage multiple emails at once: using AT&T, users don’t need to delete or recover emails one by one, but one can do it for multiple emails at once;
5. Steer email without a mouse: in AT&T, you need to use a mouse to steer emails, you can use your keyboard and virtual cursor in its place;
6. Two-step verification and other encryption methods;
7. Interactive filters to check spam;
8. Up to 25 MB attachment can be sent;
9. A complete search bar.

Common Technical Errors Occurs in AT&T Email Service

However, an error-free technology is a waking dream, AT&T also not free from errors. Furthermore, using high tech services increase the vulnerability towards technical glitches. Here below is the list of common technical errors occurs in AT&T email service:

1. Fails to send or receive emails using AT&T webmail;
2. Problem while accessing to your AT&T account;
3. Issue while configuring an email account;
4. Facing problem in creating a different email account;
5. Error codes appear while using AT&T email account;
6. Unable to update the security settings;
7. Issue while updating security question in your AT&T email account;
8. Unable to share a calendar on AT&T email;
9. Issue while resetting the AT&T password;
10. Problem while sending, receiving or downloading the attachment on AT&T email;
11. Internet connectivity issues;
12. Blocked AT&T email account;
13. Specific error codes;
14. Unable to configure the account on a mobile device.

All the above issues need expert’s treatment consequently AT&T tech support team workings all day and night to serve the troubled AT&T users.

Common AT&T Email Issues and Their Solutions

AT&T Network Issues

The network is an essential thing for the functioning of AT&T email account and the sluggish or broken up network connection can be the grounds of hindered work-routine. Network errors can be the reason behind various technical problems. In order to resolve it, fix the settings of your router by phoning your Internet service provider. Moreover, restoring the network settings on your device can help the users to fix the network issues. For further help dial AT&T support phone number.

Password Related Issues with AT&T Email Account

To determine the password issues follow the below-given solution: 1) go to your browser and open AT&T login page; 2) tap ‘Password’ and then on ‘I forgot’; 2) type your user ID, last name and then fill the ‘Captcha’; 3) tap ‘Continue’ and then move to the next step; 4) select ‘Temporary password’ from the options list; 5) give the recovery phone number you receive; 6) now complete the verification code and set a new password; 7) type the new password and you are done. AT&T support number is easily reached to help the users who are eyeing for the guide to reset or recover AT&T password.

It’s crucial to have the information of recuperating your AT&T email password as the need for password recovery can arise without giving prior warnings. Here below is the common reasons why you must require the AT&T password recovery. But if you are searching for expert support reach AT&T technical support: 1) ensure the security of your account from any unauthorized access; 2) it avoids the data loss. Below steps to reset your AT&T email password:

• First of all, ensure that you are using the correct login id and password. Make sure you’re the caps lock is on and you are using the correct set of characters.
• Navigate the AT&T password recovery page.
• Choose the reason for resetting your password.
• Fill the “Captcha” you can see on the screen.
• Provide the recovery email or phone number.
• Now, enter the verification code.
• Once confirmed, create a new password and re-enter to confirm it.

Above given steps will reset your AT&T email account password, in case you are encountering any issue while resetting AT&T email password, call upon AT&T customer support for instant experts helps. AT&T customer support number is reachable all across the clock to assist the users in resetting, recovering or changing their AT&T email account password.

AT&T Configuration Problems

Configuration settings can be a very complicated task for users and improper configuration sometimes leads to errors. You need to configure the POP or SMTP server settings. To execute this, navigate to the official AT&T help webpage and search for the required server settings. AT&T tech support number is easily reachable to fix the configuration issues in no time.

Browser Issues with AT&T

AT&T products and services are mostly grounded upon the browser and henceforth having the error-free browser is compulsory. If you are having any technical problem with your browser, stop it immediately and change to a different browser. Here below are the few tips to resolve the glitches you face with a web browser:

• Uninstalled the add-ons that are not useful or no longer required, because it will hamper the browser speed and performance.
• Explore your task manager and shut all the running applications in the background as using multiple programs at a time can slow down the browser.
• Remove all cookies, cache, and trash from your browser.
• Run the antivirus program once, it will clear the malware or viruses.

Guidelines to avoid login issues:

• Ensure that your recovery information is up-to-date so that login problems can be pick up with more ease.
• Moreover, it is sensible to change your AT&T email password after every 2-3 months.
• Keep your updated with the AT&T server information from the official web portal.

For more guidance about AT&T email service, dial the AT&T technical support phone number.

Benefits of AT&T Customer Service Number

Technical issues can arise without giving prior warnings in email services. Hence, AT&T users also face several technical issues, few are mentioned in the above section of the post. Hence, the need for AT&T customer support phone number occurs to resolve every technical concern of users. Here are few benefits of taking help from AT&T help support experts: 1) fast and proper resolution of an AT&T email account in a clear-cut way; 2) the increase in the quality of services and improving the mailing experience; 3) prevent the loss of data in case the account is hacked; 4) quick reply during crises; 5) cent percent of reliable solutions. You need a technical expert who has the depth knowledge of AT&T errors. AT&T phone number is one such service which is laden with a number of technical professionals who has knowledgeable enough to compact with every AT&T errors. Other useful features of AT&T toll-free number: 1) AT&T 24 hour tech support available for technical errors; 2) the instant AT&T tech support lives chat from the live person for a personalized solution.

Summary Business strategy of AT&T

AT&T are industry leading provider of wireline voice communication services in U.S through subsidiaries, affiliates and operating companies. In addition to this they provide telephone, Internet, voice, IP services. They provide corporate sector clients with services like conferencing, managed network and wholesale communication. AT&T prime focus is to provide high quality innovative products that helps consumers to connect efficiently. Making the use of the innovative technology and advance network provides solutions to customers and business. Therefore, corporation take a huge pride in satisfying customer needs and providing exceptional communication services.

The mission of AT&T is: “To connect people with their world, and do better than anyone else”. Vision statetment includes: ‘To design, create in this decade the new global network, processes and service platforms that maximize automation, allowing for relocation of human resources to more complex and productive work’.

The most important element of AT&T corporate strategy is concentrated growth. This includes combination of specific market and product combination. For example, development of the fibre network proved improved network across all AT&T services.

Product development means development of new product in newly emerging markets. The recent acquisition of Warner media resulted into emergence of online video content services in the entertainment group is the best example of concentrated growth.AT&T has invested aggressively on video content services to make its place in video streaming industry. Concentric diversification: In order to widen its success based on the internet services it seeks to partner with the business related in terms of technology, market as well as the product to partner with, such corporate strategy is referred as concentric diversification. For example, AT&T internet presence requires partnering with portals like Yahoo to widens its customer base.

Summary Business strategy of HBO Max

The vision of HBO Max is: “To become Number one provider of unbeatable online video content across US market”.

The recent acquisition with the Warner media enables a large library of titles of original content. Originally licensed content on different video streaming channels is brought back to the parent owner i.e. HBO Max e.g. Very famous web series called ‘Friends’ are brought down from Netflix starting 2020. A proposed feature that will let two viewers on the same account combine their viewing preferences to get custom-made recommendations.

Advertising technology. This combination of premium video content and direct-to-consumer relationships provides a profitable asset: data-driven experiences. The recently shaped advertising technology company, Xandr, will include significant new value to both communications and entertainment businesses. Bringing together all these capabilities sets up a virtuous cycle: great content drills deeper customer engagement. Deeper engagement gives more clear insights into the content that customer appreciates.

High speed wireless network has greatest advantage over other video streaming services. Since they are self-network providers, deliver the bandwidth needed to keep up with the demand for premium content.

Braytech Investment Report

• Problem: Braytech investment opportunity.
• Purpose: Identify the investment opportunity for the Braytech Company
• Problem: AT&T offers has been profitable in recent years, it has good investor rating and invests adequately in CSR and founded on excellent business ethics.

Executive Summary

This report is aimed at exploring an investment company that Braytech will invest its resources following recent margins it accumulated. The focus was to establish a company worthy of short and long term investment. Among the factors for consideration included are financial performance in recent years and the prospect for growth. The report also considered the relationship that the business with its employees, competitors, and the community. Thus, the aim was to establish a company that is financially viable and enjoys a good market rating and also strong business ethics. Braytech would prefer a company that believes in community development, and therefore, the focus was put on corporate social responsibility. AT&T was the investment destination that best suits the desires of the company. It has excellent financial standing with reasonable investor valuation. The business strategy aims at satisfying customer quality concerns. It gives back to society through support programs to uplift the marginalized. The codes of ethics are also satisfying considering the priority placed on the environment and human rights. Therefore, investment in AT&T is well informed considering the market share and revenue growth prospects the company anticipates together with the strong social responsibility and ethical values guiding the company.

Introduction

Braytech Company focuses its operations on technological-related businesses. Having registered pleasant results in the market, the need to invest in an alternative source of revenue would be best in a company that also deals with technology. AT&T, as a telecommunication company, will serve a perfect investment opportunity for Braytech. AT&T has a long history of operation, having been established in 1885. The company is the world’s largest telecommunication company and has the largest market share in the United States in terms of mobile telephones services. The company is quite successful, considering that it registered a total revenue of $170.8 billion at the end of the 2018 fiscal year (AT&T). Today, the company enjoys more than 400 subscribers across the Americas. AT&T has been listed in the Fortune best 100 company to work for in the year 2018. In 2017, it was named by Fortune Magazine in the world’s most admired company. The prospects of the company remain great, considering the series of awards it has received for its innovative practices. AT&T has registered tremendous success in the telecommunication industry prompting the need to assess its suitability as an investment destination by considering its CSR, revenue and business strategy.

Corporate Social Responsibility

Companies exist not only to make a profit but also to better the lives of the societies from which they get their companies. AT&T is one of the companies that invest robustly in their corporate social responsibility. Braytech will find the company quite attractive based on the fact that it also subscribes to the belief that giving back to society is a responsibility that each organization should take seriously. AT&T has a wide range of programs it supports under its CSR. As a company that rides on inclusivity and support for diversity, Braytech will find the company worth investing because of the support it gives to often marginalized groups like women. In the last five years, the company has invested at least $12 million in support of young women studying (STEM) science, technology, engineering, and mathematics (AT&T). Under its program titled shape, AT&T has deliberate plans to support women’s education and nurtures talent. The company funds the Girl Scout Leadership Experience (GSLE), which helps under-resourced girls develop their talents and skills. The company’s CSR projects aim at achieving long term benefits for the community and customers. According to Apics magazine, AT&T invests in a wide range of sustainability programs hinged on achieving a better future. Under the “Connect good” road map, “AT&T will see carbon savings ten times the footprint of its operations by 2025” (Apics). The company’s concern over the environment resembles Braytech objectives. The investment in the company will, therefore, come with great advantage in terms of support in achieving the environmental goals.

Revenue and Growth

Investing in companies that have proven success records in terms of growth and revenue generation is better than investing in one with future plans of success. AT&T has a good history of success in terms of revenue generation and growth. In the financial year ending in 2018, the company collected a revenue of $170.756 billion, which was an increase of 6.36 percent from the previous fiscal year (Macro Trends). The company has shown tremendous growth in revenue in the recent past in its revenue collection, making it a worthy company for investment. In the last fiscal year, AT&T hit a record profit of $91.337 billion, which has a 10 percent increase from the previous year. The fact that the company makes huge profits makes it a proper investment platform for Braytech to generate back its investment in the short run.

A worthy investment is one in with attractiveness. AT&T shows from its operation that it is a perfect business for investment based on the statistics on price per earnings ratio. Macrotrends establishes that the company has a P/E ratio of 10.3 as of October 2019. The high P/E ratio shows that the company’s stock is highly valued in the market. Braytech should consider investing in the company because of the market attractiveness that it enjoys. Another reason to invest in the company comes from the satisfaction developed as a result of the P/S ratio. Since 2012, the market has not shown any doubt in the value of the market. Interestingly, with the 1.01 P/S ratios in 2012, the ratio has been in an upward trajectory with 2019 registering 1.45, the highest ratio in over 10 years (macrotrends). The fact that investors are continuously willing to pay more demonstrates the attractiveness of AT&T that Braytech should also strive to enjoy.

Year

2017

2018

2019

Revenue Growth

$160.546B

$170.756B

$183.516B

Table 1; revenue growth for AT&T (macotrends, 2019)

Business Strategy

The business strategy used by AT&T makes it a better option to invest in because of the guarantee of continuity in operation as well as profitability. The company diversifies its operation makes it tap on a revenue multiple sources. The revenue it collects comes from communication services, pay-TV, Latin America, and Xander. While AT&T generates most of the income from wireless phone services, it has significant investment in the pay-TV, which is becoming one of the largest in the market. The segmentation of the company comes with the assurance of continued operation and a steady generation of revenue in the future. Such advantages come because each segment deals with unique aspects. The AT&T, Latin America business, constituted 4 percent of the company’s 2018 revenue (McFarlane). The segment raises its revenue through video services via satellite. The fact that the company invests both North and Latin America makes it a perfect venture because of the benefits that come with access to an extensive market.

The company uses the differentiation strategy of providing quality services to its customers. In the competitive market, pricing alone cannot attract customers. AT&T differentiates itself in the market as that company that offers quality services that customers will not find any else. The ability of the company to be the market leader in the provision of quality services comes from the significant investment it has made in the innovation. According to Quentin Hardy, AT&T is working in collaboration with Ericson, and Intel to develop a 5G network will be rolled out before the end of 2019. In its DIRECTV program, AT&T offers over 100 channels of premium content which customers can enjoy. It is because of the quality of the services provided that put among the best in the industry. Braytech, a company that values the provision of quality services, should invest in this company.

Business ethics

The business ethics put in AT&T are a strong factor that influences the success that it enjoys in the market. The company prioritizes on integrity as the basis of its over 140 years of operation. Integrity is essential in any business because it helps in the building of company reputation. As a company that invests significantly in business that deals with personal data, AT&T prioritizes security, and privacy among the core values of its practice. According to AT&T chief Privacy officer, the company runs the privacy office, which is a one-stop office to help address the privacy concerns of customers as soon as they arise (AT&T). In addressing privacy needs, the company invests robustly on security for the safety of confidential data. Besides, the company remains open and transparent in its use of huge data in servers. The company’s transparent practice makes it a desirable venture for Braytech because there is no fear that the company will explore mischievous practices. Moreover, it is healthy to deal with companies that are transparent in their operation and also respects the privacy of its customers. Braytech operates on strong value; thus, partnering with AT&T, which subscribes to the same principles, will help it achieve its objectives.

AT&T puts in place strong ethics policies to govern its operation. The ethics touch on a wide range of issues, such as environmental, social, and governance. In its climate change policy, the company acknowledges the effects of carbon emission on the atmosphere and commits to transition to environmentally friendly strategies. The company also undertakes to shift to alternative energy sources of renewable energy. In terms of social policy, the company commits to upholding every letter of human rights, such as freedom of expression. The business undertakes to respect labor rights and sustainable environmental practices. AT&T has a clearly documented code of business ethics for its proper governance. The codes of ethics apply to every person working to the company regardless of the position. In regards to employee welfare, the company operates health and safety compliance and ensures regular reviews and audits (AT&T). The codes of business ethics set by the company have seen the company receive numerous ethics award. AT&T was named in the GDBEA 2018 honoree for demonstrating a measurable commitment to ethical business practices in everyday operations, management philosophies, and responses to crises or challenges” (Great Dallas Business Ethics Award). The compliance with the business ethics make the company a perfect investment destination that the Braytech should not take for granted.

The market share of AT&T however, is not quite persuasive considering that it does not have a strong grip. The company faces strong competition from Verizon which is the market leader. The market is also crowded with other players also controlling a significant portion of the market. In 2018, Verizon was the market leader controlling 35 percent of the market while AT&T was second with 33 percent and T-Mobile at 17 percent (Macrotrends, 2019). The fact that the company does not a comfortable leader in the market is weakness that may affect choice of the investment.

While it is true that the company does not enjoy the biggest market share, it has gradually grown in the market over the years. Verizon, who enjoys the largest market share, is however, cannot dictate prices because of the insignificant gap it gives to AT&T also the fact that it does not control more than a half of the market. The fact that AT&T does not enjoy highest market does not disadvantage its operations. AT&T is likely to increase its market in the future considering that it intends to roll out 5G which is a new invention in the industry (Hardy). Therefore, AT&T fits a perfect long term investment plan considering that future innovative plan that would help increase the market share.

Recommendations

The services offered by AT&T, such as the internet and networking and wireless broadband, are essential for society day to day operations and will be relevant in the long run. This means that the company has the guarantee of continued operation, offering the same services to a broader market. Therefore, based on the surety of operation, in the long run, Braytech should consider investing in AT&T, not as an afterthought.

The purpose of investment is to raise revenue. The company is in a profitable mode as its profit has been increasing with almost a double-digit percentage. AT&T is in good financial health, and the value in the market is quite incredible. The excellent rating in the market makes the company a good venture that AT&TA should not ignore.

The commitment that the enterprise has with the community, shareholders, and customers demonstrates the company has long term strategies to continue operating. It addresses the issue of marginalization by adequately investing in women empowerment. The code of ethics governing the coming is also robust and covers essential thematic areas of concern. Braytech should find it pleasing that AT&T considers adherence to environmental policies and human rights as integral in its operation.

Works cited

1. Apics. “AT&T Demonstrates Sustainability Progress: APICS Magazine.” AT&T Demonstrates Sustainability Progress | APICS Magazine, https://www.apics.org/apics-for-individuals/apics-magazine-home/magazine-detail-page/2017/11/02/at-t-demonstrates-sustainability-progress.
2. “AT&T’s Social Responsibility News.” AT&T’s Social Responsibility News, 10 July 2018, https://about.att.com/aboutus/homepage/att_social_responsibility.html.
3. Greater Dallas Business Ethics Awards. “AT&T, La Madeleine Named 2018 GDBEA Honorees.” Greater Dallas Business Ethics Awards, Apr. 2018, https://gdbea.org/att-la-madeleine-named-2018-gdbea-honorees/.
4. Hardy, Quentin. “AT&T’s Strategy Is One Part Innovation, One Part Inspiration.” The New York Times, The New York Times, 13 Feb. 2016, https://www.nytimes.com/2016/02/15/technology/atts-strategy-is-one-part-innovation-one-part-inspiration.html.
5. Macrotrends. “AT&T Price to Sales Ratio 2006-2019: T.” Macrotrends, https://www.macrotrends.net/stocks/charts/T/at-t/price-sales.
6. McFarlane, Greg. “How AT&T Makes Money: Mobility, Video, Broadband and More.” Investopedia, Investopedia, 25 Sept. 2019, https://www.investopedia.com/insights/how-att-makes-money/.

Executive Summary

This report is based on organizational context of AT&T Inc with the aim of identifying the existing legislative framework and signed agreements of Australia (host country) that is affecting the service delivery of AT&T Inc. Further, this report discussed about few significant agreements that are affecting the business of AT&T Inc in Australia. Through the report it can be identified that the existing Taxation system and Free Trade Agreement of Australia have a significant impact on the business of AT& T Inc. While paying business tax is helping the company to develop positive market within Australia, Free Trade Agreements allows the business to enjoy non-discriminatory business Australian market.

1 Introduction

The regulatory framework is the essence of business as it holds everyone accountable for their actions within or outside the organisations. Therefore in order to operate business in global locations, businesses need to ensure they operate within the legal framework of both host nation and home nation. This report is based on organizational context of AT&T Incwith the aim of identifying existing legislative framework and significant agreements of Australia (host country) that is affecting the service delivery of AT&T Inc. Further,this report discussed about few significant agreements that are affecting the business of AT&T Inc in Australia.

1.1 Overview of the telecommunication industry and AT&T Inc

AT& T Inc is an American multinational company and headquarter is in Whitacre Tower in Downtown Dallas which is in Texas. The journey of the company started with the beginning of Southwestern Bell Telephone which is a subsidairy of Bell Telephone founded by Graham Bell in the year 1880. As a part of the growth initiatives in 2018, AT7T Inc took over the Warner Media and transformed into the world’s leading media & Entertainment Company based on its profitability (Salop, 2018). AT&T Inc is a modern media company based in the US and operating their business across the globe, within the telecommunication industry. This company operates their business with total employee strength of 2, 73,210(AT&T, 2019). The operation of AT&T Inc started in Australia in the year 1992 and at present it has position itself as the leading solution provider within Australia. The Australian telecommunication industry generates $38 bn every year with an annual growth rate of 0.2% (2014-2019)(Ibisworld.com.au, 2019).

2 Evaluation of legislative regulatory framework affecting the business of AT&T Inc (MNC)

Over the years a paradigm shift can be evident in the way companies run their business. Companies have shifted their interest from local or domestic to global market. According to Gunn (2017) the positive impact of globalization is that it allows companies to access a bigger market for selling products or services, across different continents; however, that has increased the level of complexity. As companies started operating in global market, the initial concern for business is to understand different regulatory frameworks of different countries and ensure operating business within those existing regulatory frameworks.

2.1 Corporate tax in Australia

A business must pay tax to federal, state and local governments in order to operate within Australia. This tax rate is dependent on the size and location as because tax rate for small business in Australia is 27.5%, whereas MNC and other big companies of Australia pay tax at the rate of 30% (Austrade.gov.au, 2019).AT&T Inc which operates within Australian market are liable to pay 30% tax of their total income to the federal government of Australia. Taxes of Australia are collected and controlled by Australian Taxation Office (ATO) and in few cases by the revenue offices of state government. Parker (2018) opined that businesses can save money and time by paying right amount of tax and enjoy taking advantages of tax concession. Some of the key taxes systems that can have significant impact on the service of AT&T are as followed

Company Tax

Capital Gains Tax (CGT)

Goods and Services Tax (GST)

AT&T has the right to decide whether it wants to pay the tax on monthly, quarterly or yearly basis.

2.1.1 Company Tax

AT&T which is a non-resident company in Australia pays tax on its domestic source of income in Australian market, same as domestic companies. However, taxable amount might differ under certain conditions like industry or business structure. AT&T must pay regular tax on their income amount of Australian market to continue operating their business.

2.1.2 Capital Gains Tax

Capital Gains Tax (CGT) is applicable on any assets gained through the disposal possessions (Faccio and Xu, 2015). AT&T needs to pay CGT as a part of their income tax to the federal government of Australia. However, as a foreign entity, AT&T might have to pay CGT on various assets acquired and used for their business. AT&T need to ensure that they keep a track of every asset it uses for business and it could be subject to CGT in future.

2.1.3 Goods and Service tax

Goods and the service tax is applicable on most of the goods and services purchase and used in Australia. AT&T needs to list itself for the GST in the ATO office. Businesses that buy business supplies with GST can declare a similar amount of tax credit (Ramliet al., 2015).

2.1.4 Payroll tax

Payroll taxes are applied on the salary business reimburse to its employees and it need to be paid to the state government of Australia. It is considered on monthly salary of employees and must be paid if total salaries (Australian) surpass the exempted amounts per the state. AT&T needs to pay Payroll tax to the state government if the monthly wages of employees exceed the excepted threshold for Australian wages.

2.1.5 Consequences of unpaid taxes

Based on the latest Corporate tax transparency report released by Australian Taxation office suggest that one-third of the large Australian companies do not pay their taxes or failed to pay their taxes, even after making a gross profit (ABC News, 2019). The officials of ATO referred in this report that concentrated effort on multinational tax avoidance had begun to appear as multinational companies reconstructed their tax payment structure to stay within the law. This report further highlighted that companies reconstructed tax payment structure to increase the compliance with country based reporting system.The report of ATO report clearly states that AT&TInc has total income of $ 146,079,439 with a taxable income of $7,206,984 and tax payable for the company is $ 2,162,095. If companies failed to pay taxes there are some consequences that companies need to faces such as

• ATO can add interest to the total unpaid amount on a daily compounding basis
• Companies will receive notifications from ATO via letter, phone, SMS or message in MyGov
• If there is any future credits left for the company, ATO will use that to repay the unpaid amount
• ATO has the right to appoint external collection agencies to collect debt on their behalf
• ATO is authorised to take string actions on the denial of working towards repayment of unpaid amount or repeatedly defaulting agreed payment plans.

These above actions are applied only when companies including MNC failed to pay their tax on time of the gross income and Australian Taxation Office has the authority to take any of the above actions. However, each of these actions might have negative impact of the business process and reputation of AT&T Inc. Hence, it is critical for AT&T Inc to understand different tax applied of business to run smooth business and develop positive reputation among customers and global investors. Not only AT&TInc, but also every MNC which are planning to enter the Australian market for their business must consider the existing taxation system of Australia for efficiency business process.

3 Discussion of agreements that are affecting the services of AT&T Inc

Trade agreements have major impacts on business and investment across the globe. As a matter of facts trade agreements are accountable for shaping business relationships among companies all over the world (Kohlet al., 2016). In order to deliver service or sale products in global market, MNCs needs to be aware of different trade agreement and impact of those trade agreements on business. Similarly leaders or managers of big corporate must be aware of the trade agreements to understand the market need and financial concerns of consumers. Based on this rationally, AT&T Inc needs to build awareness about the Australian Free Trade agreements (FTAs)as it might impacts the provision of services offered by the company.

3.1 Free trade Agreements of Australia

Free Trade Agreement is agreement between multiple countries that generate benefits for importers, exporters, producer and investors of Australia by eliminating some barriers of international trades and investments (Department of Foreign Affairs and Trade, 2019). Australia signed total 11 FTAs with individuals and group of countries.

3.1.1 Australia-United States FTA

The FTA between Australian and United States implemented on 1st January 2005. This contract presents a landmark in developing Australia’s trade association with United States which is known as world’s richest economy. Besides, the US is known as most significant service exporter and importer across the globe. Thus, this FTA significantly developed Australia’s importance as a destination of the US investment and important for the effort which makes Australia competitive in global market. This FTA holds special significance for service providers like AT&T Inc in Australia. This trade agreement provides immediate benefits for the US manufacturing workers and companies. This will further help the US to enter into service market with the sense of equal behaviour (Department of Foreign Affairs and Trade, 2019). One the basis of this FTA, the US based service providers will be allowed to bid for Australian’s government purchases on a non-discriminatory basis. All exporters of the US will be able to enjoy duty free services in Australia. This will bring more transparency in the pricing policy as the US based multinational service providers will be allowed to fix the service price based on the domestic market. For instance, AT&T Inc being a US based company will be allowed to charge same for their services in Australian market, like other existing service providers due to the FTAs.

3.1.1.1 Electronic commerce

Australia is the leader in the electronic commerce market and comes 9th in world ranking of readiness and 8th in the world in Internet penetration. Notably, 95% of Australian businesses along with the 66 % of households are connected to internet service. This makes Australia a profitable market for the US for investing in electronic commerce. In the market, FTA is accountably securing the rights of products like software, music & video and ensures it receives non-discriminatory treatment. Further customs duty will not be applied on these services under FTA. AT &T Inc which offers pay -TV services to its customers will receive non-discriminatory treatment in the Australian market, leading to more profitability for the business.

Under the FTA both Australian and US governments recognise the legal validity of the electronic signature and ensure maintaining a technology-neutral approach for their use (Weatherall, 2015). Further Free Trade Agreements develop compliance on part of both governments to start discussion on the identification of digital certification issued by or on behalf of third party. Another significant approach included in FTA agreement defines effective online consumer protection. As per this clause, both Australian and US governments must be liable for any paperless trade administration and ensure consumer protection even under paperless trade agreements.

Therefore, after evaluating the Free Trade Agreement between Australia-US, it can be identified that Free Trade Agreement of Australia with the US will allow AT&T to run their operation is the Australian market with a sense of non-discrimination. While delivering service to the customer, AT&T Inc will enjoy an equal market share in the Australian market. The price of services will be fixed against the existing market price of other telecommunication providers. Any and every legal agreement or contracts that aresigned online,with the customers will be administered by both Australian and US governments, ensuring online consumer protection. Further, AT&T Inc under the FTA will not be subject to custom duty. Custom duty free business under the free trade agreement will help the company to keep their service price low compared to those companies which pay customsduty to the Australian Government. Thus Free Trade Agreement helped AT&T Inc to be one of the major competitors in the telecommunication market.

4 Conclusions

The aim of this report was to identify any legislative regulatory framework and agreement of Australia that can create impact on the services and business operation of AT&T Inc. Through the discussion it can be identified that existing Taxation system and Free Trade Agreement of Australia have significant impact on the business of AT& T Inc. While paying business tax is helping the company to develop positive market within Australia, Free Trade Agreements allows the business to enjoy non-discriminatory business Australian market. Therefore, it can be concluded that regulatory framework and agreements impact the way an MNC operate in host country and regulate their service terms.

References

1. ABC News. (2019). You’re paying more tax than some of Australia’s biggest companies. [online] Available at: https://www.abc.net.au/news/2018-12-13/one-third-of-australian-companies-paid-no-tax-ato/10614916 [Accessed 25 Apr. 2019].
2. AT&T. (2019). AT&T® Official Site – Phone Plans, Internet Service, & TV – att.com. [online] Available at: https://www.att.com/ [Accessed 24 Apr. 2019].
3. Austrade.gov.au. (2019). Australian business taxes – Austrade. [online] Available at: https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-taxes/Australian-business-taxes [Accessed 25 Apr. 2019].
4. Department of Foreign Affairs and Trade. (2019). Australia’s free trade agreements (FTAs). [online] Available at: https://dfat.gov.au/trade/agreements/pages/trade-agreements.aspx [Accessed 25 Apr. 2019].
5. Faccio, M. and Xu, J., 2015.Taxes and capital structure. Journal of Financial and Quantitative Analysis, 50(3), pp.277-300.
6. Gunn, S., 2017. Globalisation, education and culture shock.Taylor & Francis.
7. Ibisworld.com.au. (2019). Telecommunications Services – Australia Industry Report | IBISWorld. [online] Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/information-media-telecommunications/services/telecommunications-services.html [Accessed 25 Apr. 2019].
8. Kohl, T., Brakman, S. and Garretsen, H., 2016. Do trade agreements stimulate international trade differently? Evidence from 296 trade agreements. The World Economy, 39(1), pp.97-131.
9. Parker, H., 2018. Instead of the Dole: an enquiry into integration of the tax and benefit systems. Routledge.
10. Ramli, R., Palil, M.R., Hassan, N.S.A. and Mustapha, A.F., 2015. Compliance costs of Goods and Services Tax (GST) among small and medium enterprises. JurnalPengurusan (UKM Journal of Management), 45.
11. Salop, S.C., 2018. The AT&T/Time Warner Merger: Judge Leon Garbled Professor Nash.
12. Weatherall, K., 2015. The Australia-US free trade agreement’s impact on Australia’s copyright trade policy. Australian Journal of International Affairs, 69(5), pp.538-558.

History

Technology in 2019 has evolved into something we could never have phantom of having a few years ago. People are dependent to technology especially with their mobile phones, people can’t live a day without waking up and going to sleep without checking their phones. Who is responsible for that norm we are living in today? Alexander Graham Bell invented the telephone in 1876 which he created two patents with the help of two financial backers, in 1877 the company was named The Bell Telephone Company. In 1878 the first telephone exchange opens in New Haven, Connecticut which later changed the company’s name to the Bell System. In 1882, the company acquired Western Electric company, which would secure them a supplier of telephone equipment. In 1885 the American Bell Telephone company created a charter to build a long-distance network which they completed their first long distance line which was from New York to Philadelphia. In 1894 Alexander Bells patents that he created for his telephone had expired, which forced him to open thousands of companies across the country. In 1899 Two university students attempted to develop adding coils which would reduce the rate of a traveling phone weakness, which made it possible for them to make longer telephone lines, in that same year that’s when the company comes to be named American Bell Telephone. In 1907 that’s when Theodore Vail who was the president of ATT develops a guide for the company to be in system for 70 years not knowing that the company would have ever taken off or still been successful. From 1908 to 1913 they start to acquire Western Union Telegraph which most Hispanics and Latin Americans use to send money from Mexico or other southern areas from North America, Acquiring the company led ATT to have its first ever long-distance network. 1915 to 1919 was important to ATT because it was the first time that they had ever connected its phones though a continental area which would span from the White House in Washington D.C to San Francisco but that did not come cheap as its initial prices was $20.70 for just 3 minutes of call time which resulted in volumes of calls being significantly low, soon after that happened AT&T had installed dial telephones. 1922-1927 was the first time that there was ever a commercial for AT&T which was a great marketing tactic or them as they were getting free marketing. The first ever call between the Atlantic was made through the radio broadcasting which at the time only had a capacity of one call but it suffices to say the price was not cheap as for 3 minutes of call time would cost you just about 75$. Months later ATT had demonstrated the television which was the first time anyone had ever seen a live moving image that had been transmitted over the cable which was seen by a large audience. From 1934-1937 there was service from the US and Japan which would travel across the Pacific radio broadcast which was the era of the world war. From 1940-1950 ATT starts experimenting with Coaxial cable which today transmits service through the telephone jack, the first inception of the mobile telephone had ATT service which had an antenna that would allow a maximum of 20 calls within that metropolitan area. About 40 years later ATT had acquired South Western Bell (SWB) in 1984. A telecommunications Act in 1996 expanded South Western Bell’s presence leading to Americans getting familiar with the company, by 2005 South Western Bell had acquired AT&T. Creating the new AT&T that we have known. In 2006 Cingular Wireless was bought by AT&T which lead AT&T to focus more on wireless technology and cellular devices which at that time were flip phones. In 2013 they acquired another cellular company Cricket, which allowed its customers to have prepaid plans and access to their internet services, by 2015 the acquisition of DirecTV made AT&T the largest corporation to acquire avenues from a wireless company to a pay TV provider. Knowing what we know about the evolution of technology and where it all begins you can’t really grasp your mind on how fast it evolved. Usacell and Nextel were also purchased by ATT in 2015, which would not only change the history of wireless technology and communications in the USA but of that on Mexico. Today AT&T leads in providing telephone services at homes and business as well as wireless cellular, Internet and Satellite Television.

Demographics

AT&T has expanded from Mexico to South America which not only includes mobile phones but internet and digital services. It is also the fastest growing wireless provider in Mexico. Hispanics and Latin Americans have all seen how AT&T has catered to their needs in terms of how many customers purchase the services they are offering. Many people may not know this, but AT&T has stake in markets from DirecTV to SKY satellite what that means is that not only are we getting great service so is Latin America. The demographic for Hispanics and Latin Americans signing up for service with ATT is staggering because it is the only company that not only has service through telephone but offers internet television and mobile plans. Many Hispanics don’t like to have many payments here and there so the fact that ATT is offering all those services in one price is amazing. AT&T knows how to market to its customers which is why they have created plans that entice the Latin and Hispanic communities to purchase plans to make calls to Mexico and Latin America which is not something other providers do at such an affordable price. It serves as 80% of the countries population that has 4G LTE networks and an LTE-M network in Mexico that has created jobs for 40,000 individuals in Mexico with 18,000 being actual ATT employees. ATT has also acquired DirecTV which has changed the Latin demographic largely, most elderly individuals choose to watch movies and television in Spanish which is great for ATT as they have a target demographic to tackle. DirecTV has launched plans that have enticed Spanish speaking customers to purchase those plans. Overall the demographics within customers that are Hispanic to Latin American decent is staggering because ATT really reached their audience listened to their needs and delivered a service they would enjoy and continue to enjoy for years to come. ATT has also contributed to a lot of charity work for Hispanic and Latin American students the ATT has the HACEMOS scholarship program which is a partnership with the Hispanic College Fund. It grants students from 18-25 year old scholarships or achieving great philanthropy work and receiving good grades throughout their high school year, Many Hispanic and Latin American parents are aware of the scholarship which is why the Hispanic demographic tends to do business with companies that not only offer great deals but also contribute back to its society and what better way to give back then to the future of tomorrow which are students.

AT&T Hispanic Plans:

AT&T is one of the strongest phone providers in the US. Providing its service across the world, but the most improved and growing part of the world is in Central and South America. They carry branches like DirecTV, Sky, and even Vrio. The company has provided more than $8 billion in Revenues on the years 2017. There AT&T Mexico is the fastest growing wireless provider in Mexico and in other parts of South America. A lot of people, especially new customers may ask, ‘what is the main goal for AT&T?’, the company has answered that they are the ‘leaders’ on providing digital entertainment for all customers across the world, through their branches SKY and DirecTV.

Let us talk about the AT&T service that most Latinos/Hispanic customers will prefer to use. AT&T provides a wide variety of services that customers can choose form; they even have great line service for affordable prices. Up to $40 dollars for 4 lines are just some of those packages offer by AT&T. Another perk that many Hispanic customer enjoy about AT&T is their roaming plan data. Allowing customers to text and talk with no charges to countries like Mexico and Canada for most of their domestic plans. These types of plans are useful for many people who have family member in all Mexico. For instance, people in South Texas are most likely to have these plans because they are a border city to Mexico, and a lot of people have family members living in different parts of Mexico. Some of these customers living in this South Texas region have businesses in Mexico, and they rely on a good company that can provide a service with no troubles so they can be connected to their businesses. These packages are beneficial for any type of age group. For example, elder people may use it to contact family members in Mexico and would probably use a phone line for up to an hour, witch if they were to use other phone lines the charge rates would be high.

Any calls to other countries have different plans for those customers as well. They provide two different packages that allows these customers to call international places, those plans are the ‘pay-per-use’ or they have the option to get a ‘ILD’ service package.

AT&T with its wide variety of wireless network can provide many services for customer’s needs. They not only provide a phone network for customers to communicate, but they also provide branches for TV networks, with many channels to be watch by new Hispanic customers. DirecTV Hispanic Plans:

DirecTV throughout the years has committed to provide a wide variety of channel and networks for people in US and across the world. Let us talk about the plans offer for the Hispanic/Latino community in America. DirecTV offers plans from $29.99 a month for customers who want to broadcast Hispanic channels in their business. When you enter to check the plans online, the first thing you see as part of their marketing strategies is the Univision Logo, witch a lot of Hispanics can relate to from watching TV shows or have heard about them on other sort of media like Facebook or even YouTube ads.

Most of their plans for business are reliable in price starting from $29.99 and going to $79.99 a month. They also offer many sources like mobile and tablet apps for people to accommodate to their needs. One good thing that the online website provides is the use of both Spanish and English languages. Language as we have seen throughout the semester plays an important role in communication in many cultures around the world. Providing this sort of service in both languages can make a customer feel more comfortable with their purchase, because everything is provided in great detail; remember that most Hispanic/Latinos come from a background where everything has to be stated clear as water, otherwise they will opt to buy a product or acquire a service.

Let’s talk about the services provide in the DirecTV website. The DirecTV packages offer a tab where you click on Spanish packages. The first thing that pops out is the yellow checkmarks talking about their advantage of their service with over 85 Spanish-language channels available in the “Mas ULTRA package”, they also talk about Genie HD DVR included, and the advantage of getting the first 3 months of HBO, HBO Latino, Cinemax, and more channels for no extra cost if you get the package previously mentioned.

DirecTV relies on providing a wide variety of packages in their service. They state that some of their packages gives the customer access to more than 110 Spanish-language channels and over 240 English-languages channels making this easier for the consumer to connect to the ‘Spanish-speaking world.’

For instance, they have a package titled “Mas Latinos”, which they have a special going on in the present day where most of their package have a discount for one year under the contract, and the “Mas Latinos” is at $55.00, where after the 12 months of the contract the price goes to the $63.00 regular price. All other packages like the “Optimo Mas”, “Mas Ultra”, and “Lo Maximo” have a lower priced compared to the “Mas Latinos” with more channels, but this is used as a hook to attract the consumer and to make them think that by getting the bigger packages with more channels they will pay a fair amount of money, not knowing that after the 12 months of their contract the prices change to regular price and to be honest the packages are a bit pricy. Some of those packages go from a drastic change of $45.00 to $109.00 after the first year.

DirecTV also states that the prices listed can change at any point, saying that the offer would stay able for a limited time offer. On all their packages they include a free installment for their equipment by a professional, in case of a personal modification to the installment there are extra charges included.

One additional thing that all 4 packages share is the access to watch Premium Movies. The company will give 3 months of free access to watch premium movies, which is $53.99 regular price per month. After these 3-month trial if the customer does not cancel the plan before the offer is over, charges will be added to the monthly fee charges.

Interviews

We interviewed AT&T employees to further get an understanding of how many Hispanics and Latinos really get these types of plans that are geared towards the Hispanic and Latin America demographic. We ask current AT&T employee Monica Torrez.

In the San Antonio region do you typically see an influx of customers purchasing international plans to make calls to Mexico? Typically, we don’t see customers purchasing these types of plans, the reason why is that AT&T offers its customers international calling for free when they get unlimited plans. A couple of years ago many mobile companies did not have this feature in which customers wanting to make calls outside of the US to Mexico would pay about 5-10$ just for a Mexico or an international plan.

In a Month how many customers purchase a plan to talk to someone in South America? AT&T offers unlimited calling to Mexico; however, this does not apply to Latin American areas, for example let’s say a customer from San Antonio wants to make a call to Argentina. They would have to get an International Day Pass. You pay a daily fee of 10 dollars a day and you don’t incurred any fees because of it, so to answer your questions yes, we have had about 10% of total customers in this store that have come to add the International Day Pass plan.

Do any customers who purchase the International Day Pass inquire any issues in terms of service or communication issues with their relatives in the Latin American region? I have heard of some customers having issues, to me their issues stem from technology problems from their cell phone. Perhaps they have a faulty microphone, or they exposed their phone to water. That’s primarily issues some customers face when they have any issues, but for the most part customers with the daily pass don’t have any problems contacting their relatives.

We asked Abraham Smith from the Mission AT&T location as follows

How do you target to Hispanic customers in the RGV area? Hispanic customers in the RGV area are more of a traditional customer that wants everything said under the contract of the service nice and clear so they can analyze every detail they are being offered by any company. This sort of customers will be attracted to bigger quantity and better-quality services for a reliable cheap price. Most packages offer by AT&T and branches are the perfect fit for all types of customers and ages.

AT&T’S competitor is spectrum, do you see a decline from Hispanic customers due to its competitor? Spectrum is good competitor with a lot of potential that is coming up in many parts of the US. Although it’s a good competitor, there is not much of a danger for AT&T, do to our variety of offers the company has across all branches. We provide good customer care and service for all our customers in the US and abroad. We always count on special offers for our packages and even have separate packages for our Hispanic customers who will enjoy watching Spanish language channels; plus, we keep updated on every new show that our customers might like on our service. That’s why I will answer a NO, to the question of seeing a decline of Hispanic customers, our service and network can’t be compared domestically or internationally.

Resources/ Graphs

These are some resources gathered to identify the language most Hispanics Americans speak that would further help us identify the increase or decline of their Hispanic and Español plans.

Works Site

1. “AT&T Latin America Profile.” AT&T News, Wireless and Network Information, 6 July 2018, about.att.com/pages/company_profile_latin_america
2. “AT&T Unlimited Data Plans Give You More with Free Live TV.” AT&T® Official – Wireless, Internet, & DIRECTV Offers, www.att.com/plans/unlimited-data-plans.html?source=EC1N250000000000P&WT.srch=1&wtExtndSource= att plan&gclsrc=aw.ds&&gclid=Cj0KCQjw2IrmBRCJARIsAJZDdxDz7u7r9iePYcYHpEwu_CmdkMbmeFVcq3WC8b_l_x9qYIEhGb6TmtYaAtlqEALw_wcB
3. “Home Page.” Directv, www.directvofertas.com/?gclid=Cj0KCQjw2IrmBRCJARIsAJZDdxBwZlhUeYfJiakRBElObXfyLTqmH83J6j7sxmN7mKQuNjgbhS3GxkIaAlrcEALw_wcB
4. “DIRECTV Spanish TV Packages ι Latino Channels & Bundles.” AT&T® Official – Wireless, Internet, & DIRECTV Offers, www.att.com/directv/spanish-packages.html
5. Terminos y Condiciones, www.usdirect.com/es/terminos.
6. The historical brands of AT&T, Brand – Licensing, Evolution and Domain Names, https://about.att.com/innovation/ip/brands/history
7. “A brief history of the company that is as old as the telephone itself”, CNN money, https://money.cnn.com/2001/07/09/deals/att_history/.
8. “AT&T IS”, AT&T official website, https://about.att.com/ecms/dam/sitesdocs/ATT_DandI_2017_AR_FINAL.pdf

Executive Summary

AT&T, Inc. (NYSE: T) has agreed to acquire Time Warner, Inc. (NYSE: TWX) in a deal valued at $85.4 B for a combination of cash and AT&T stock. The blockbuster merger between the two giants was completed on June 15, 2018. As a result, AT&T issued 1,185M shares of common stock and paid $42.5B in cash; net debt from Time Warner, amounting to $180.4B. For each share of Time Warner, a shareholder is entitled to $53.75 of cash and 1.437 shares of AT&T common stock. As a result, highlights of full year consolidated result of AT&T as of December 2018 looks as below (referenced from current 10K report):

• Diluted EPS of $2.85 as reported compared to $4.76 in the prior year (2017 impacted by tax reform)
• Adjusted EPS of $3.52 compared to $3.05 in the prior year
• Cash from operations of $43.6 billion, up 15%
• Capital expenditures of $21.3 billion
• Free cash flow of $22.4 billion, up 36%
• Dividend payout ratio of 60%
• Consolidated revenues of $170.8 billion

Key Issues

The biggest issue grappling the deal was the anti-trust lawsuit (as per a report by Investopedia):

• Because of the size of the two companies and their broad reach across many different areas of business and culture, the merger would have a profound effect across the U.S. Detractors argue that it could lead to higher prices and harm competition in the industry.
• Regulators are largely concerned with protecting competition and the consumer when it comes to cases such as these. AT&T could coerce other cable companies to pay more for the rights to carry popular television shows and channels. This would likely mean an increase in cost to the consumer. The Justice Department believes that this process might add $436 million in extra fees to cable subscribers each year.
• Besides the major business implications of the AT&T-Time Warner merger, the antitrust lawsuit will have much broader implications for the world of mergers and acquisitions (M&As) in general. Indeed, the case would be a bellwether for future mergers and acquisition deals.

Finally, AT&T acquired Time Warner after clearance from the appeal made by Department of Justice with respect to the earlier decision given by the US District Court, Washington, D.C.

Other key issues in the merger of the two companies would be the integration issues of the two giants:

• Retaining Top Talent: Retaining executive leadership is a challenge given the restructuring of the leadership team for the combined entity. As of now, several high-profile exits have already occurred, the pronounced ones being the exits of CEOs of HBO and Warner Bros.
• Cultural Synergies: AT&T should take learnings from the failed merger of the erstwhile AOL Time Warner to make a successful and sustainable merger. Both companies have different work cultural attributable to the different industries they operate in, and as such, careful consideration of the cultural aspects should be done by the leadership team

Deal Rationale

The future of media entertainment is rapidly converging around three elements required to transform how video is distributed, paid for, consumed and created. Viewers have a plethora of options to choose from to watch content and have more power to dictate the rules of the game in terms of price point, customer service, live or scripted content, and geographical reach of the players. Media executives increasingly believe that content creation and distribution must be married to survive against technology companies. Those companies, even though, started producing their own shows in just the last several years, they now spend billions of dollars a year on original programming, and users can stream the video on apps in homes and on mobile devices, putting pressure on traditional media businesses.

By teaming up with Time Warner, AT&T can successfully compete with companies like Facebook, Amazon, Google, and Netflix collectively called FANG. It would also aim to collect usage data regarding viewership of the content, with the ultimate goal being able to construct a digital advertising arm to compete with these major rivals. AT&T, with its acquisition of Time Warner would bring together:

• Premium Content: Broadly distributed, a robust premium content portfolio that combines leading movies and shows from Warner Bros., HBO and Turner, along with more targeted digital content from Bleacher Report, FilmStruck and AT&T’s investment in Otter Media, among others.
• Direct to Consumer Distribution (D2C): AT&T has more than 170 million D2C relationships across its TV, video streaming, mobile and broadband services in the U.S., mobile in Mexico, TV in Latin America, in addition to D2C digital properties such as HBO NOW, Boomerang, FilmStruck and CNN.com.
• High-Speed Networks: AT&T‘s leading wireless and fiber network, including investments in new technology such as 5G, will provide the network bandwidth required as customers increase engagement with premium video and emerging 4K and virtual reality content.

As such, the mega merger would create a media and telecommunications powerhouse, reshaping the landscape of those industries. According to CEO John Stankey, content spends at WarnerMedia would be competitive to that of Netflix, Amazon and Apple. This is another benefit of the AT&T/Time Warner merger, and is committed to launching a compelling and competitive product that will serve as a complement to the existing businesses and help expand the reach by offering a new choice for entertainment with the WarnerMedia collection of films, television series, libraries, documentaries and animation. It will bring a fresh approach to how the media and entertainment industry works for consumers, content creators, distributors and advertisers.

Revenue Implications / Synergies

The company expects the acquisition to provide significant financial benefits:

• Accretive year-one adjusted earnings per share and free cash flow; strengthened dividend coverage
• Increased synergies to $2.5 billion
• $1.5 billion in annualized cost synergies by end of year 3 following close
• $1 billion of annualized revenue synergies by end of year 3
• Maintain a solid balance sheet and improved credit metrics with net debt to adjusted EBITDA 2.9x at close
• AT&T’s growth would result from developing its next-generation streaming video platform and targeted advertising capabilities. AT&T expects to build on its successful history of managing technology transitions as the video industry moves from linear to over-the-top (OTT) services
• AT&T expects to expand its video offerings to better address each customer segment and grow its total video subscriber base. This includes AT&T’s top-of-the-line services DIRECTV and U-verse and OTT service DIRECTV NOW
• AT&T expects to be the first U.S. company to launch a standards-based mobile 5G service in 2018

Cost Implications / Synergies

AT&T expects annualized cost synergies of $1.5 billion by the end of the third year after close primarily from consolidation of back-office systems such as IT, Finance, Legal etc. The sharing of facilities in many locations within US and outside would also bring cost synergies.

Headcount / Facilities Impact

• Headcount: at the time of the merger, AT&T has a headcount of 254,000 and Time Warner has a headcount of 30,400. There is an anticipation of cut-down of jobs in the back-offices such as HR, IT, Finance and Legal due to integration of the two entities. Careful evaluation and a well-thought out plan needs to be laid out to handle such a sensitive issue
• Facilities: There would be duplicity in the office spaces with facilities in the same cities within the different states of United States. A long-term look at the facilities mapped with the growth plan would be a better approach to consolidate the facilities within US and globally

Systems Implications

An important part of the integration plan would be to have a unified IT system with similar back-end IT infrastructure, cloud solutions, ERP and CRM system for a seamless experience for internal and external stakeholders.

Deal Terms

• Total transaction value of the M&A is $85.4B. The enterprise value of post-merger AT&T, Inc is $409.59B
• AT&T will acquire all outstanding shares of Time Warner for a combination of cash and AT&T common stock. Because AT&T’s price was way below the bottom of the collar, Time Warner holders got only about $46.70 of AT&T stock rather than $53.75. In all, Time Warner holders got a total of about $100.45 a share rather than the stated $107.50
• AT&T funded the deal through free cash from its operations, and a mix of debt and equity financing
• The deal was completed on June 15, 2018

Deal Team

• JPMorgan, Bank of America Merrill Lynch, and Perella Weinberg are advising AT&T on the buy side
• Thomson Reuters, with JPMorgan and Bank of America Merrill Lynch providing a $40 billion bridge loan
• Allen & Co., Citigroup, and Morgan Stanley are advising Time Warner on the sell side

These firms could earn in fees, according to the consultant Freeman & Co.:

• AT&T buy-side advisory: $90 million to $120 million to the advisory group (Perella Weinberg, JPMorgan, Bank of America)
• AT&T $40 billion bridge loan: $110 million to $130 million to arrangers (led by JPMorgan and Bank of America)
• Time Warner sell-side advisory: $110 million to $140 million to advisory group (Allen & Co., Citigroup, Morgan Stanley)

Integration Plan

The consolidation of the combined entity began on June 15, 2018. No officially published integration plan is published, but a look at similar M&As, the integration plan would look like:

• Part I – Closing and Day One: Communications, Operative Structure, Systems & Controls, Business Plans/Budgets
• Part II – Post-Merger Integration: The Process, Visioning, Success Factors, Working Methods & Tools, Reporting
• Integration Checklists for different functional streams (Finance & Control, HR & Personnel, Legal, Facilities, IT)

The new entity is divided into four strategic business groups as below:

• AT&T Communications provides mobile, broadband, video and other communications services to U.S.-based consumers and nearly 3.5 million companies – from the smallest business to nearly all the Fortune 1000 – with highly secure, smart solutions. Revenues from these services totaled more than $150 billion in 2017.
• AT&T’s media business, now coined WarnerMedia, consists of HBO, Turner and Warner Bros. Together, these businesses had revenues of more than $31 billion in 2017. A new name for this business will be announced later.
• AT&T International provides mobile services in Mexico to consumers and businesses, plus pay-TV service across 11 countries in South America and the Caribbean. It had revenues of more than $8 billion in 2017.
• AT&T’s advertising and analytics business, now coined Xandr, provides marketers with advanced advertising solutions using valuable customer insights from AT&T’s TV, mobile and broadband services, combined with extensive ad inventory from Turner and AT&T’s pay-TV services.

The integration plan would focus on implementing revenue and cost synergy while maintaining the work cultures in each sub-division.

AT&T Inc. is the largest supplier of fixed telephony in the United States, and furthermore gives broadband and membership TV administrations. “AT&T is the second largest supplier of mobile telephony service in the United States, with over 92.8 million wireless customers, just behind Verizon Wireless’ 93.2 million, and more than 210 million total customers. AT&T has approximately 290,000 employees AT&T has more than 90 million wireless customers. AT&T has more than 16 million high speed internet subscribers. AT&T has more than 2.5 million uverse subscribers Exclusive U.S. provider of iPhone 3G / 3GS / 4. As of 2018, AT&T is the 7th largest company in the United States by total revenue, as well as the 3rd largest non-oil company in the US (Behind Walmart and Bank of America). It is the 3rd largest company in Texas by total revenue (Behind ExxonMobil and ConocoPhillips) and the largest non-oil company in Texas. It is also the largest company headquartered in Dallas. In 2018, Forbes listed AT&T as the 13th largest company in the world and the 8th largest non-oil company in the world, the largest company in the world not associated with banking or oil, as well as the world’s largest provider of telecommunication. Telecom and technology giant AT&T has been around for 141 years. Although the company operates in more than 200 countries and acquires an average of five patents a day, its leaders know continued success depends on sustainability. And from there, it’s a short leap to supply chain, which they recognize is central to any sustainability initiative. In order to meet the global demands of their presence, AT&T requires bringing into force effective supply chain management and its thinking is the call of the hour. I assume that AT&T strategies are resilient enough in that regard. This report also presents some significant finding of AT&T supply chain management strategies, which is a pioneer for the industry” (AT&T,2019).

Firm’s strategic objective: “AT&T want to lead supply chain to improve company’s social and environmental impacts by integrating sustainability performance metrics into sourcing decisions for 80% of spend. AT&T’s goal is to make sure it has the best end-to-end technologies in place” (Elizabeth, 2017).

Company manage the flow of information within its supply chain as: AT&T work with industry peers to create and advance adoption of sustainability measurements that will change the ecological and social effect of innovation supply chains. Innovation and technology assumes to play a fundamental role in the progress to the low-carbon economy, better-overseeing asset use, expanding business strength and improving day by day lives. They are utilizing technology to do just this. Studies, as Global e-Sustainability Initiative’s SMARTer 2030 report, demonstrate that data and correspondences innovation can significantly diminish carbon emanations, increment business openings, and elevate access to administrations, for example, human services and training.

Supply chain management and competitive strategy: AT&T supply chain network is a part of the Dallas, Texas-AT&T Company which has branches in excess of 200 counties worldwide with the inclusion of in excess of 355 million customers. Dallas, Texas AT&T is a global organization managing in telecommunication. At the point when the organization started it monopolized the market with home telephones as no other organization was accomplishing it. A long time later the organization can offer home telephone administration as well as mobile, web, and TV plans. AT&T has two noteworthy areas; following ozone depleting substance outflows and accomplish a normal score of 80 percent or more prominent on its reasonable citizenship and manageability (C&S) scorecard. The AT&T supply chain network is headquartered in Dallas, Texas and has more than 130, 000 workers. AT&T supply chain is sorted out into three areas including America, Europe, and Asia Pacific/Middle East/Africa.

AT&T supply chain Diagram

1. Plan-Laying the foundation for a supply chain network.
2. Source-Getting the materials at the time required to be
3. Make-Supporting product manufacturing
4. Store and customize-Getting it prepared to sell
5. Deliver-Getting it where it is supposed
6. Return-Bringing it back when it is not required

Discussion of the industry

Consumer and retail form the two largest sectors served by AT&T supply chain. In these segments, AT&T offers numerous administrations along its inventory network including arranging, creation, sourcing, stockpiling, and esteem included administrations. AT&T production network is a worldwide innovator in contract coordinations with 8.3% piece of the pie in a divided market. AT&T production network has branches crosswise over real towns in the UAE including Ras Al Khaimah, Abu Dhabi, Al Ain, Dubai, Festival City, Fujairah, Sharjah, and Meydan. The principal target of this office is to develop through perfection. By utilizing this system, AT&T focuses to relentlessly improve the current business and accomplish gainful development in the key segments of the economy. Likewise, the supply chain network area utilizes the corporate system, First Choice Methodology to proceed with them as of now accomplished destinations and enhance their gainfulness considerably further. Likewise, the supply chain network division has the Sector Focus Program which goes for improving the skill in all the six center areas recognized. The division additionally guarantees that they streamline the clients’ business forms by creating and recreating calculated arrangements as indicated by the Strategic Products Replication program. AT&T inventory network has a progression of exercises and procedures that guarantee clients fulfillment with the administrations offered and that they profit by the production network. The principal thing that AT&T has actualized is the Parcel 2012 Production idea. This idea guarantees that there are effective arranging and transportation of its products accordingly improving productivity and bringing down expenses in the inventory network. Regarding developments and new items in the market, AT&T is thinking of various items that are gone for bringing down working expenses and improving effectiveness. AT&T is extremely enthusiastic about changes in innovation and business rehearses and guarantees that they convey the best in the market. Consistently they call several clients to their premises and acquire data in regards to what they have to change so as to fulfill their clients. AT&T has it in its way of life that each representative is constantly out to help a client in this manner guaranteeing consumer loyalty inside and out. AT&T is additionally entirely adaptable as accomplices the supply chain network and guarantee that they work together completely with partners and investors to guarantee that they convey quality administrations and products(Jim, 2014).

SWOT Analysis: AT&T’s supply chain network bolsters three functions in AT&T. A consumer group handles handsets, tablets, gadgets, set-top boxes and other client confronting items that are conveyed to AT&T’s 2,500 stores across the country and different telecoms and specialists. This group is served by two appropriation centers. AT&T’s system consumer group the coordination, arranging and sourcing related with keeping up the organization’s remote system just as its 22-state wireline establishment correspondence business (Scott, Lundgren, and Thompson, 2011). The group is served by two organization possessed conveyance focuses and five organization satellite focuses, Harden says. The third supply chain network group bolsters the endeavors of the organization’s business association in oversaw administration equipment and video and information premise hardware and furthermore performs arranging, sourcing and coordination exercises for the whole organization. The principal powers change on the production network methodologies and exercises incorporate changes in innovation, changes in business procedures and exercises, changes in the economy incorporating changes in costs, and expanded challenges. Every one of these elements is a risk to the advancement of AT&T and therefore will massively influence corporate system and activities(Hitesh, 2018).

Supply chain SWOT analysis

Company’s organizational and management structure

AT&T Company utilizes various techniques to guarantee that they remain at the highest priority on the rundown of coordinations organizations around the world. One of the methodologies they have set up is to put the client as the principle center and guarantee that their clients get quality merchandise and ventures. So as to do this, AT&T has guaranteed that they have the best costs in the business and have many particular administrations offered to specific clients. The SCOR model which is an abbreviation for Supply chain activities reference is a reference demonstrate in-supply chain network tasks and the executives. The principal center supply chain network process is arranging. In this stage, request and supply issues are examined and intended to guarantee goals are met. The following stage in the SCOR model is sourcing. This stage investigates material and framework procurement, and guarantees that there is adjusted correspondence along the inventory network to guarantee effective receipt, check and exchange of products. The third stage is the creation stage. This stage chiefly manages the creation and assembling issues and exercises. Make stage is trailed by the conveying stage which investigates warehousing, request the executives, and transportation. Aside from that, the SCOR demonstrate has the arrival stage which is the last stage. This stage manages the return of blemished items, compartments, and bundling. With respect to AT&T Company, the SCOR display is a system that causes them to guarantee that they increase the value of the supply chain network amid the make stage and guarantee that they acknowledge the return of deficient products from clients. AT&T Company deals with the whole inventory network and gives different administrations including warehousing, esteem included administrations, counseling arrangements, production network the board, transportation, and conveyance. By offering these administrations, the organization guarantees that they proficiently manage products from the supplier to the end customer without third parties. “The company manages all communications and supply chain activities to ensure efficient and timely delivery of goods. Operations management and logistics decisions are a core determinant of the supply chain activities. They determine the amount of resources to be used to accomplish supply chain activities, the manner in which goods are packaged, the route to be used in transportation and many other activities associated with the supply chain. AT&T Company is organized into three main departments; finance, human resources, and logistics departments. The three departments work hand in hand to ensure efficient execution of business transactions and have common goals geared towards ensuring profitability of the organization and delivery of quality products” (Sople, 2012).

As-is supply chain

Strategic supply chain costing and performance measurement: “AT&T Company uses all the seven principles of strategic cost management. These principles include defining clear and consistent objectives, provision of tools and knowledge for success, having excellence as the only performance target, understanding the impact of true costs during decision making, reducing organizational complexity, having rational management decisions, and commitment in business. AT&T Company uses these principles to engage in various cost reduction techniques to ensure that they offer the best prices in the industry. One of the cost reduction techniques used is to manage all activities across the entire supply chain. In doing this, the company uses its warehouses, resources, and transportation thus minimizing contracting and sourcing costs. In addition to this, AT&T has a simplified organizational structure which ensures that less revenue is used to pay managerial staff. This also reduces the number of required assets and office space thus cutting on costs. In order to have effective strategic cost management, the company is supposed to adopt a number of tools that will help increase efficiency and accountability. The first tool is value chain management concept. Understanding the industrial value chain of a company will help managers to identify core and dummy activities along the chain thus giving them easy time when making decisions along the value chain. Another tool that can be adopted is the target cost accounting. Understanding target costs will help managers to set fair prices for products while still maintaining a good profit margin. Product life cycle is also another tool that can be used to make decisions. Understanding the life cycle of a product will help managers to make the right cost decisions of the product. Another tool for strategic decision making is activity based costing/management. This helps managers to focus their attention on activities that improve customers’ value and the resulting profits achieved. The last tool for strategic cost management is competitive advantage analysis. Understanding the competitive advantage of a firm will help managers to use this advantage when setting product costs thus enhancing cost management. Since AT&T manages all activities along the supply chain, they do not have specific guidelines on how to select suppliers. However,AT&T has various trusted providers from which it gets its buys and items for inside use. So as to gauge its encouraging in sourcing, consumer loyalty, and coordination forms, AT&T Company utilizes worker supposition reviews, consumer loyalty studies, and investors sentiments for rating. AT&T additionally utilizes these studies to gauge the execution of its supply chain network. These appraisals demonstrate the reaction time of the supply chain network, and impeccable request satisfaction as mentioned by the customers. The money to money process duration and the supply chain network stock days are dictated by the inward estimations by the coordination office. From online research, it is apparent that AT&T Company is performing great in the market and has adjusted all coordinations tasks as to the vital objectives set by the enterprise” (Arlbjørn, 2010).

Competencies and outsourcing: The Central skills of AT&T Company incorporate powerful correspondence components, expanded advancements and better approaches for executing business, capacity to execute the greater part of their transacting business on the web, presence of a strong management team, and in-house consultancy. These are the principle abilities of the firm since they help it to proficiently lead exchanges and have upper hand over their rivals. AT&T gives redistributing administrations in business procedures and data arrangements and does not re-appropriate. A portion of the risks related with redistributing incorporate loss of efficiency on the off chance that the item may require master learning amid disappointment, a poor result of administration quality, and loss of business information in the event that the required item was to add to a business’ upper hand. A make-or-purchase analysis is a way toward choosing whether an organization will take part in-house generation of a thing or will purchase the thing remotely from a seller or maker. The choice taken amid this examination is dictated by two principle things; the expense of the thing and the accessibility of assets and generation limit. At the point when an organization chooses to purchase a thing as opposed to building it is called redistributing (Sean, 2018).

Supply chain rationalization: Supply-base improvement or right measuring is the way toward analyzing providers of an organization to decide the correct blend and number of suppliers that will effectively serve an organization. It incorporates decreasing or adding the number of suppliers to guarantee dependability and effectiveness in provisions. In AT&T Company, it is obvious that it has an improved supply base. This is basically in light of the fact that it has not many authorize providers for its inward crude materials and items. AT&T Company likewise participates in business with different providers having a place with their clients for the procurement of products for transportation. Job moving is the capacity of gatherings in the supply chain network to change jobs and even dismantle more jobs from their underlying jobs. Job moving is the center structure on which AT&T Company is based on and causes it to deal with all jobs in the supply chain network from the receipt of products to their conveyance to the end client( Jennifer, 2017).

To-be supply chain

Supply chain relationships: For good connections between the organization and the clients, at&t should guarantee that they have decides that suitably recognize a client, distinguish all client-focused exercises, incorporate both manual and online correspondence in their frameworks, and guarantee that there are procedure and application coordination. AT&T should recall uncommon events for the clients, compose individual messages to old clients, and make follow up calls. To the providers, the organization should guarantee that they keep up both manual and online correspondence channels, guarantee that they pay on schedule, share critical data with respect to the market prerequisites, keep up honesty on data, for example, evaluating, and give enough lead time when requesting products. Aside from that, the organization should guarantee that they keep up great associations with their rivals. They should guarantee that they know them, realize what they are doing as far as item separation and guarantee that they are in great terms with them. Effective coalitions between organizations or teams are made when the two parties consider the five standards of associations. The main standard expresses that parties should concentrate less on the field-tested strategy and spotlight more on how the organization will function. They are likewise expected to create rules pegged on coalition advance and not exclusively to collusion objectives. Notwithstanding that, they are additionally expected to use contrasts to make esteems, energize community oriented conduct by going past administration structures, lastly oversee interior partners properly.

Sharing information across the supply chain: AT&T Company utilizes various data frameworks in its supply chain network. The main framework is the ERP system which oversees stock and business exchanges. Another framework that is being utilized by AT&T is the distribution center administration framework, which helps in dealing with the section and exit of merchandise and crude materials in the stockroom. AT&T has the live request following framework (LOTS), which helps in the following merchandise when they are on travel to the client. These frameworks help to give constant data which helps the administration in basic leadership. They likewise help in making transaction processing proficient and financially savvy. Then again, the organization has acquainted internet business with its mail transportation administration for the proficient conveyance of data. AT&T utilizes the web in following their GPS empowered travel vehicles while transporting merchandise to the client (Celine, 2013).

Discussion and Analysis

The to-be AT&T supply chain process structure should have a great deal of data frameworks which will oversee exchanges progressively. This will assist the organization with increasing proficiency in transaction executives and administration delivery. Having modernized frameworks all through the supply chain network will likewise push the directors to effectively follow exchanges and products over the supply chain network. This will likewise assist the organization with reducing activity expenses and influence more benefits from the business. As a rule, there are three principal sorts of supply chain network mapping; demand density, sales territory, and customer distribution centers mappings. Demand density supply chain mapping includes the utilization of a computerized guide to demonstrate the geocoded client positions in a predetermined zone. This pictorial data gives information that is utilized by an organization in overseeing dispersion systems which can’t be given by negligible numbers. Utilizing this technique, clients can be mapped as to client deals volume, client type, and numerous different variables. The business domain mapping gives a mapping of the appropriation of clients in a predetermined territory. This pictorial data causes organizations to evaluate their effect in new markets, survey their effect on new administrations and items, and improve asset use in deals and advertising. This sort of mapping likewise causes an organization to realize how to dispense deals delegates in the diverse territories and expertise to arrange their transportation. Then again, the client (conveyance focuses) designation mapping is a pictorial portrayal of the clients that will be overhauled from the particular circulation focuses. The time or separation interim from clients to the circulation focus causes organizations to know whether they have to include more dispersion focuses or lessen the disseminations focuses. This improves administration delivery and diminishes transportation costs. The utilization of these three kinds of mapping will help AT&T to improve its administration delivery , improve time interims between conveyance of products, help in the ID of new market openings, and help in dispersion the executives. Also, utilization of supply chain network mapping helps in the appraisal of the effect of new items in the market, evaluation of the effect of entering new markets, decrease conveyance expenses, and improve basic leadership process in the supply chain network (Trent, & Roberts, 2010).

Conclusions:

In conclusion, it is evident that AT&T has a well-managed supply chain and is the best organization to lead supply chain activities.The capacity to deal with all exercises and exchanges over the whole supply chain network gives AT&T a higher competitive advantage over its rivals (Sople, 2012). Aside from that, this framework streamlines correspondence and stream of merchandise from one phase of the supply chain network to another. The introduction of advancement goods and administrations causes AT&T to have proficient procedures and administrations along these lines making it the most favored organization for supply chain network undertakings.

Recommendations

AT&T should join endowments or limits to their cargo and transportation charges. This will draw in more client into their framework and furthermore help keep up old clients. AT&T should consolidate a great deal of web and internet business utilization in their supply chain network procedures to empower for a productive and financially savvy method for exchanging data and payment. AT&T should present difference variance analysis and other effective cost estimation systems. They are likewise expected to computerize cost and execution estimation utilizing data framework programming. The organization should fuse data frameworks in the whole supply chain network to use the benefit of the web. This will help in making the framework mechanized in this way expanding effectiveness and lessening on working expenses. AT&T should utilize electronic methods for correspondence through coordinated ERP and the executives programming to enhance effectiveness and speed of correspondence along the supply chain network. AT&T should utilize framework incorporation over all the utilitarian offices and divisions in order to make a constant domain for effective progression of data. AT&T should guarantee that they have the prescribed procedures in all the key exercises and useful divisions. This will help in guaranteeing that their vital objectives are lined up with the departmental objectives and exercises. Improving their partners and building relationship, so it encourages the organization to additionally grow. Given the pattern in Asian telecom development in the current, it’s a smart thought for AT&T to grow their telecom chain in Asians advertise, be it in India, and China. Improvement of their procedure dependably calls essentially. AT&T should provide consistent enhancements and learning’s stressing on diversity programs and workers responsibilities and their concentration on workers with extraordinary necessities.

Introduction

AT&T’s prepaid mobile phone division is one of the largest in the country and services roughly 20 – 30 million subscribers annually. One of the problems though with utilizing this particular service provider is the fact that “topping up” (the act of adding prepaid phone credits to a phone) is at times an arduous process due to the inherent deficiencies in the automated system (Hempel, 2005).

As indicated by consumer surveys which examined the overall usability of the automated system, consumers state that it was at times difficult to navigate the intricacies in the system especially when taking into consideration the numerous security features that AT&T has put in place (Lee & BradLow, 2011).

The Go-Phone (the brand name of the prepaid phones used) automated system at times asks users to enter in a 4 digit pass code before they are able to access several features of the service which includes the ability to add phone credits onto the account (Report: Interest Surges With New Go-Phone, 2003).

Unfortunately, as seen through internal studies within AT&T’s own prepaid phone division, it was noted that consumers kept on calling customer service since they constantly forgot the pass code to their phone (Lee & BradLow, 2011).

This then results in a long process of verification where the representative asks the caller to provide some form of verification on the account aside from the pass code which can consist of either the last 3 numbers called, when was the last time they added phone credits to the account or when they created the account in the first place.

In total, when combining the amount of time to call the automated system, getting rejected since they didn’t have the proper pass code, having to call customer service in order to get the pass code reset, waiting to reach a representative, verifying the account the holder, resetting the pass code and verifying the reset pass code the entire process could take up to 30 minutes or more depending on how many other consumers are calling at the same time.

While it may be true that current Go-Phone models do have installed tools wherein new pass codes can be requested by consumers the problem still continues to plague the system (Report: Interest Surges With New Go-Phone, 2003).

Upon further investigation, it was discovered by AT&T that a large percentage of their consumer base cannot be considered “phone literate” in that they did not know how to utilize the more technical menus available in their phone (Lee & BradLow, 2011). This of course presents itself as a problem since this creates higher wait times to speak to a representative in order to resolve the issue which would necessitate AT&T having to hire more representatives in order to handle the increased number of callers.

The solution seems simple enough, change the automated system in order to remove the need for consumers to enter in the pass code for their phones. Unfortunately, there are several problems when removing the pass code system: for one, the reason pass codes are there is to prevent other people from using a consumer’s AT&T account to make unwarranted purchases.

What must be understood is that AT&T not only allows consumers to add money onto their accounts utilizing the automated system but it also allows them to make small purchases on the AT&T store. This can constitute various ringtone, games, multimedia and other downloadable content A malicious user could utilize a system without a pass code in order to buy a lot of useless downloadable content onto a user’s phone in order to drain that individual’s prepaid account balance.

Also, a person could do it themselves and call AT&T stating that someone maliciously accessed their account and as such AT&T would have no choice but to credit the charges back to the customer and remove the content from the their phone which essentially gives that individual a few days of free content usage.

Another factor to take into consideration is the fact that AT&T does offer customers the ability to either change their number or transfer their number from one SIM card to another. The pass code system prevents any malicious user from transferring numbers from one phone to another in order to cause grief to the original user.

One possible alternative solution is to merely remove the pass code system when adding prepaid credits onto an account. This particular method would of course make it far more convenient for consumers to add phone credits onto their account without having to go through the arduous process of having to remember to reset their pass code.

The reason why this particular solution hasn’t been implemented on all AT&T Go-Phone cards lies in the fact that one of the methods utilized for account verification is stating when was the last time phone credits was added onto an account. A malicious user could buy a cheap AT&T Go-Phone card, add it onto an account and take complete control of a person’s AT&T account through that process of verification. It is due to this that the pass code system is necessary in order to prevent cases of account theft from occurring (Silva, 2008).

On the other hand this doesn’t resolve the issue at all; a large percentage of AT&T’s consumer market is still stuck with utilizing a system that has them undergo an arduous verification process just to add money onto an account.

While there are alternative solutions to this problem such as buying a reusable AT&T charge card from Target or using AT&T’s automatic billing system which utilizes the Vesta payment system to charge people on a monthly basis using their credit cards or checking accounts the fact remains that such methods are for people with marginal to medium income rates.

As seen by internal studies by the company it was shown that consumers that had the hardest time in dealing with adding phone credits using the automatic system were individuals that were part of low income demographics of American society.

This consisted of various mixes of demographics consisting of minorities, the uneducated, the poor etc. While this paper is not trying to indicate that just because an individual is poor means that they are uneducated and would have a hard time using the system the fact remains that evidence from AT&T’s own investigations showed that this was the case.

These particular individuals usually buy cards of the lowest denomination for their prepaid phones and as such buy more prepaid cards and utilize the system more on a daily basis as compared to consumers that are able to afford higher denomination cards or have credit cards that can be used in the Vesta automatic payment procedure (Hempel, 2005).

This represents a problem for the company since one of the largest consumers of their prepaid phone service is having the most trouble with the system which puts a strain on company’s call center representatives who should be assisting more consumers rather than dealing with calls that involve adding money onto an account that should have been taken care of by the automated system.

While AT&T does give users the option of calling in and using their credit card to add money onto an account without having to use a pass code the fact remains that not all members of low income demographics have credit cards or the money to accomplish such a transaction (Palenchar, 2003).

What is necessary is to implement an alternative service to consumers that allows them to add in phone credits onto their account in a safe and secure way without having to go through the arduous task of having to utilize the automated system. Such a system needs to be convenient so that even the most inept of consumers can easily use it while at the same time it must be secure so as to ensure that no malicious users would be able to get into an individuals personal account (Silva, 2008).

AT&T did try to attempt something similar through the use of an online transaction system or refillable cards that could be bought at several shops but these did not go over so well with the demographic that was being targeted. What must also be understood is that AT&T cannot make phone credit transactions more convenient for one consumer segment while at the same time exposing its other segment to potential security risks.

One of the major problems in the U.S. at the present is the potential for identity theft and as such if a person were to steal another person’s phone number through a fraudulent transaction then AT&T could be considered liable for exposing its customers to such dangers. It is based on this that AT&T finds itself in a predicament that requires both security and convenience yet creating such a solution with two opposing factors is difficult to say the least.

Solution

One way of resolving this predicament is by utilizing the Smart Credit system developed by my company. This particular system was inspired by the E-load and Auto-load technologies seen in the Philippines which is considered the texting capital of the world with an estimated 1.39 billion texts sent every year from a subscriber base of only 72 million users.

The E-load and Auto-load systems utilized by Philippine based telecommunication companies (Globe, Smart, Sun, Touch Mobile, and Red Mobile) allows registered vendors to sell prepaid phone credits from their user accounts in exchange for 1 percent of generated income per transaction. The payments for all transactions are thus forwarded to the mobile providers at the end of the month and the payments for services rendered are deposited in the user’s bank account.

This particular system resulted in a proliferation of prepaid mobile credit vendors in corner stores, shopping malls, groceries, supermarkets etc. Basically any public location possessed a prepaid credit vending stall that could process mobile credit purchases quickly, effectively, and of course cheaply since users could pick from low to high variables.

All transactions are subsequently recorded by the automated system and vendors are required to provide receipts and records for all transactions to ensure that no problems regarding misuse occur. This particular system has proven itself to be an effective platform for selling prepaid phone credits since telecommunication companies located within the Philippines have even begun to scale back their production of prepaid cards in favor of utilizing this electronic loading system.

One of the inherent costs with creating a prepaid card is the system utilized for creating the security codes hidden at the back of each card. The production, distribution and sale of such prepaid cards actually constitutes a considerable level of cost for companies such as AT&T especially when taking into consideration the sheer amount of fraudsters and scam artists trying to “hack the system” by entering strings of numbers hoping to come across a number combination that would actually be legitimate.

The electronic load system gets around this by automatically crediting a customers account through an electronic confirmation rather than a security confirmation code.

All the customer has to do is provide their number, pay for the transaction with the sales representative and the confirmation code can be sent to AT&T’s system in order for the amount to be automatically credited to the customers account.

Since consumers don’t have to deal with the automated system nor will they need to provide a pass code this would make it far easier for consumers to make payments for prepaid phone credits. Not only that, since the auto-load system can be placed on nearly any type of phone small businesses can become prepaid top up kiosks where any consumer can come and add money onto their prepaid mobile device.

What the Company Will Provide

The solution my company will provide comes in the form of utilizing our proprietary Smart Credit system as a way for AT&T to distribute its own brand of electronic top-ups.

My company will conduct market research across all states and regions within the U.S. and identify which particular towns and cities would benefit the most from utilizing this particular system. After this research has been accomplished we will conduct, in conjunction with AT&T, product testing procedures in select towns and cities to determine consumer responses to the use of the system.

Should consumer responses prove to be positive, these areas will be selected as the initial markets where the product will be distributed. Initial distribution will consist of targeting corporate retail establishments such as Wal-Mart, Walgreens, Costco, Whole Foods etc. Basically any establishment that has a lot of consumer traffic and can be considered marginally secure for the initial test run.

It is expected that the initial launch will be successful both due to the convenience the service provides and the fact that it enables consumers to buy phone credits in places where they normally shop thus making in easier for them. Once the initial launch utilizing corporate partnerships becomes successful the next phase of the procedure will involve marketing to smaller stores and individual consumers as a means of generating extra income.

It is expected that the future proliferation of the Smart Credit system will enable AT&T to cut back on its production of prepaid cards as seen in the case of the Philippines. By utilizing this particular process not only will it save AT&T money in the long run but will help to create a network of buying stations that would enable it’s consumers in nearly any town or state to conveniently and securely add phone credits onto their account.

Anticipated Problems in Implementation

It is assumed that there will be hurdles in initial implementation of the Smart Credit system due to the fact that what AT&T is essentially doing is granting users the ability to give out phone credits directly from AT&T’s system.

There are numerous possibilities for malicious use ranging from crediting more money than what was given, crediting when no money was given at all or utilizing the system as a means of unlimited phone credit access. It is due to this that only major businesses will be given full unlimited access to the prepaid credit system while individual or small businesses will have a set limit to the amount they can sell per day.

Also, new policies need to be implemented regarding the systems use such as reporting immediately when the phone where the Smart Credit system is present is stolen. Reports not filed within a given working day will result in the person who lost the phone being liable for the amount of credits transferred despite no money being given. This procedure is to discourage attempts at trying to trick AT&T into repeatedly issuing new Smart Credit systems despite the phone not really being stolen in the first place.

Limitations and Issues to Smart Credit Usage

What must be understood is that the Smart Credit system will work within AT&T’s current phone credit architecture and as such will come with the same limitations as normal credits utilized by consumers. This means that the phone credits will also come with an expiry date similar to what is present in the other prepaid payment systems however roll over minutes will also apply to this particular system.

Another factor to take into consideration is the limits of AT&T’s current prepaid network and how certain areas are not serviceable by AT&T prepaid. While it may be true that the Smart Credit system can spread rather easily through individual consumers and businesses the fact remains that since AT&T doesn’t service all areas there are certain areas which the Smart Credit system isn’t viable.

Not only that, areas with few AT&T clients cannot be considered viable locations for such a system since too few consumers within a particular area is indicative of the location being controlled by another telecommunications company.

Lastly, there are issues regarding how Smart Credit prepaid credits stack with the roll over minutes already present within a phone that have been added on through some other means. It is anticipated that new policies or means of conversion will be necessary in this particular case in order to prevent any discrepancies or consumer complaints in the future.

Positive Results of the Smart Credit System

When examining the case of the Philippines it can be seen that the effects of their auto-load or e-load systems has in effect made it far easier for the average consumer to conduct prepaid transactions from nearly any public area within the Philippines.

If such a system were to be implemented within the U.S. it is anticipated that AT&T’s market share of the prepaid market will increase as a direct result of the greater convenience provided by such a system. It must also be noted that within the past few years there has been an increased demand for AT&T’s discontinued $4.99 and $9.99 prepaid cards which many low income consumers bought due to their relatively low price.

The reason why such cards were discontinued was due to the fact that their original purpose was for prepaid consumers to buy texting and internet browsing packages however they were instead used for AT&T’s $1 a day unlimited calling feature (Hempel, 2005).

Not only that, the sale of such cards was determined by AT&T corporate management as not being cost effective in the long run and as such they were subsequently discontinued. With the Smart Credit system AT&T can bring back the old denominations that low income consumers are looking for and as such enable them to communicate affordably with their friends and family despite their low income.

Conclusion

Based on the presented data in this paper it can be seen that not only would the Smart Card system benefit AT&T and resolve the issues inherent in adding in phone credits with the automated system but it also presents new market opportunities that can be explored.

The greater convenience afforded to consumers as well as the possible proliferation of AT&T Smart Credit stores would enable the company to penetrate markets that it wasn’t able to do before and grow its market share. While it may be true that there may be a few initial problems early on it is anticipated that the use of such a system would create more benefits rather than inconveniences for AT&T.

Reference List

Hempel, J. (2005). Prepaid Cell Plans Sound Better. Businessweek, (3947), 90.

Lee, T., & BradLow, E. (2011). Automated Marketing Research Using Online Customer Reviews. Journal Of Marketing Research (JMR), 48(5), 881-894.

Palenchar, J. (2003). AT&T Tries Prepaid Without Pain. TWICE: This Week In Consumer Electronics, 18(11), 34.

Report: Interest Surges With New GoPhone. (2003). Wireless Week, 9(16), 18.

Silva, J. (2008). TracFone racks up another win against cellphone hackers. RCR Wireless News, 27(6), 15.