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Essay / Research Paper Abstract
This is an 8 page paper discussing SBC Communications: its threats and opportunities, leadership, business strategy, diversification and foreign investment. SBC Communications Inc. is one of the world’s largest data, voice and Internet service providers. Through its global networks, the company deals mainly in providing a full range of voice, data, networking and e-business services in addition to being a directory of advertising and publishing. SBC is the leading provider in the U.S. of high-speed DSL Internet Access services through which it serves 56 million access lines. In addition, SBC owns 60 percent of America’s second-largest wireless company, Cingular Wireless, which serves 23 million customers. SBC was ranked No. 27 on the 2002 Fortune 500 list. SBC currently has 175,000 employees with 2002 operating revenues at $43.1 billion. Chairman of the board and CEO Edward E. Whitacre Jr. has led the company in the past decade to its increased investments in the U.S. and abroad in addition to its expansion in the industry and the fight against the FCC’s Telecommunications Act of 1996.
Bibliography lists 3 sources.
Page Count:
8 pages (~225 words per page)
File: D0_TJcoSBC1.rtf
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Unformatted sample text from the term paper:
in providing a full range of voice, data, networking and e-business services in addition to being a directory of advertising and publishing. SBC is the leading provider in the U.S.
of high-speed DSL Internet Access services through which it serves 56 million access lines. In addition, SBC owns 60 percent of Americas second-largest wireless company, Cingular Wireless, which serves 23
million customers. SBC was ranked No. 27 on the 2002 Fortune 500 list. SBC currently has 175,000 employees with 2002 operating revenues at $43.1 billion (SBC, 2003). Major Threats and
Opportunities One of the major threats to SBC Communications was the Telecommunications Act of 1996 which was "aimed to bring competition to the 100-year-old local phone monopoly by requiring the
Bell telephone companies to rent parts of their networks to competitors" (Mehta, 2003, p. 151). The reasoning behind the act was that there was no way that companies could possibly
recreate a network which took decades to establish. While the Bell companies first found this to be reasonable, what they found was that the vague interpretation of the act "required
them to rent out not just the capital-intensive copper wires that lead to users homes, but other pieces of the network that could easily be purchased - switches for directing
traffic, say - at a big discount" (Mehta, 2003, p. 151). In addition, each state got to set limits to how much the Bell companies could charge for access to
the networks and since many of the states have been trying to entice competition, many have set the rates very low which threaten the livelihood of SBC and the other
Bell companies (Mehta, 2003). SBCs chairman and CEO, Ed Whitacre has reported that it is the resellers who have hit SBCs profits the hardest as it lost 7% of its
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