At&T Sypnosis

Running head: SYNOPSIS OF AT&T

SYNOPSIS OF AT&T

University of Phoenix

SYNOPSIS OF AT&T

The American Telephone and Telegraph Company (AT&T) dates its beginning back in 1875, "with founder Alexander Graham Bell's invention of the telephone." AT&T became the parent company of Bell System and for many decades, AT&T controlled the telecommunications industry in the United States as the government allowed AT&T to function as a regulated monopoly. As a result, AT&T was shielded from competition and business pressure. It had the liberty to take however much time and money to do research and innovation in a non competitive environment. However, AT&T regulated monopoly ended in the early 1980s when changes in the telecommunications industry led to an "antitrust suit by the US government against AT&T." As a result, AT&T and Bell system broke up into 8 companies.

With the AT&T and Bell System breakup, AT&T was faced with a new environment different from where it was accustomed to. In the past, when AT&T functioned as a regulated monopoly it had the privilege to use time however long it takes to perform technological research to provide new services and adapt to the changing needs of its customers. With the break up, AT&T had competition to overcome and needed to how to "find out and deliver what its customers wanted, when its customers wanted it, in competition with others who sought to fill the same customers' needs." As a result AT&T market share fell from ninety percent in 1984 to fifty percent 12 years later.