chp . 3 – industry overview
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Chp . 3 – Industry Overview. Traditional Telephone Companies & Cable TV Providers Mobile Providers Smaller Competitors Internet Based Competitors Why Governments Regulate Telecommunications. The Bell System in 1984. - PowerPoint PPT PresentationTRANSCRIPT
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Chp. 3 – Industry OverviewTraditional Telephone Companies & Cable TV Providers
Mobile ProvidersSmaller Competitors
Internet Based CompetitorsWhy Governments Regulate Telecommunications
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The Bell System in 1984
• SBC purchased BellSouth, the former AT&T’s long distance and AT&T Wireless
• SBC changed its name to AT&T In 2005 after the above purchases
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Incumbents: AT&T, CenturyLink and Verizon
AT&T Inc.– AT&T Wireless– AT&T Landline services
• Residential Internet access, voice telephone & TV
• Business & Commercial offerings– broadband– Cloud and managed
services– International Networks
• Wholesale offerings to other carriers
• Verizon Communications– Verizon Mobile
• Jointly owned by Vodafone and Verizon
• Verizon/CTLINK landline services
• Residential Internet access, voice telephony & TV
• Business & Commercial offerings– Business broadband– Cloud and managed services– International Networks
• Wholesale offerings to other carriers
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4
Industry Overview
Carrier/competitor• Group 1: AT&T Inc.,
Verizon Communications, CenturyLink
• Group 2: XO, Level 3, Windstream
• Group 3: Apple, Google, Amazon, Netflix
• Group 4: Comcast and Charter
Each group answer all questions• What services do they
offer?• Who are their
customers?• What are their
strengths?• What are their
challenges & weaknesses?
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Mobile Providers
Largest providers • Verizon Wireless
– 60% owned by Verizon– 40% by UK’s Vodafone
• AT&T Mobility• Sprint Nextel• T-Mobile USA
– Owned by T-Mobile Germany– MetroPCS
Industry issues• Advantages
– No wires! • Challenges
– Upgrades– Competition
• Margins• Churn
– Regulations– Capacity
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Cable Multiple System Operators (MSOs)
Largest cable MSOs• Comcast• Time Warner Cable• Cox Communications• Charter
Offerings• Triple plays
– Pay TV– Internet access– Voice telephony
• Business offerings– Cloud & managed services– Fiber to the premise– Voice and long distance
• Wholesale offerings – Backhaul to mobile carriers– Metropolitan networks
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Industry Segments• Facilities based Carriers• Resellers
– Wireline– Wireless
• Cable TV vs. traditional phone companies• Internet based competitors
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Internet Based Competitors• Amazon• Apple • Google• Microsoft• Netflix
• Technological enablers– Fiber– Broadband– Powerful computers– High-speed processors
• Competing offerings– VoIP – Streaming TV– Cloud services
Netflix
Comcast to homes
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9
Results of Competition
Providers
• - Comcast• Local telephone companies:
AT&T and Verizon and CenturyLink
• - Competitive providers: XO, Level 3 and Windstream
• -Vonage, Google, and Skype• Wireless carriers: Sprint, T-
Mobile, Verizon Wireless, AT&T Mobility, MetroPCS
Competition• What are benefits of
competition?• What are drawbacks of
competition?• How have your choices
increased or decreased? • What do you think are the
result of so many mergers?
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Rationale for Government Regulations
Safety
SecurityWars
National disasters
National defense
Consumer protection
Competition
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Regulatory Issues• Mergers• Spectrum• Intercarrier compensation
Comcast
• Cable TV is too expensive!
• Can we change our provider?
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Summary
• A complex industry– New competitors
• Technological enablers• Changes in consumer access to entertainment• Changes in modes of communications
• Why do governments regulate telecommunications?• Regulatory impact
– Competition– Licensing– Court decisions– Subsidies