Introduction
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, downtown Dallas, Texas. AT&T Inc. (AT&T) is a provider of telecommunication services to its customers, predominantly in the US. The company offers both wireline and wireless-based telecommunication services. The company’s service offerings include local exchange services, data/broadband and Internet services, and long-distance services. Besides, it also offers video, telecommunications equipment, managed networking, wholesale services and directory advertising and publishing services. AT&T provides voice coverage in over 225 countries, data roaming in over 205 countries, and 3G in over 145 countries. AT & T, the nation's fastest, most reliable 4G LTE network for a widespread, ultra-fast and consistent experience. AT&T's mobile Internet service footprint covers more than 80 percent of the U.S. population, including the top 100 U.S. markets.
This company expanding 4G LTE across their network footprint and AT&T customers will continue to have access to fast 4G speeds even when they are outside of an LTE area.
They are constantly working to deliver new capabilities and applications via their access network. For example, their U-verse service deployment is enhancing our wired access capabilities to deliver advanced IPTV services to residential customers.

AT&T is bringing it all together for our customers, from revolutionary smartphones to next-generation TV services and sophisticated solutions for multi-national businesses.

For more than a century, we have consistently provided innovative, reliable, high-quality products and services and excellent customer care. Today, our mission is to connect people with their world, everywhere they live and work, and do it better than anyone else. We're fulfilling this vision by creating new solutions for consumers and businesses and by driving innovation in the communications and entertainment industry.

We're recognized as one of the leading worldwide providers of IP-based communications services to businesses. We also have the nation's fastest and most reliable 4G LTE network.* We also have the largest international coverage of any U.S. wireless carrier, offering the most phones that work in the most countries. AT&T operates the nation's largest Wi-Fi network** including more than 32,000 AT&T Wi-Fi Hot Spots at popular restaurants, hotels, bookstores and retailers, and provides access to more than 461,000 hotspots globally through roaming agreements.

AT&T U-verse is TV inspired by you. It's TV the way you want it, with tons of cool features and capabilities. AT&T is the only national TV service provider to offer a 100-percent IP-based television service. It's part of our "three-screen" integration strategy to deliver services across the three screens people rely on most - the mobile device, the PC and the TV.

As we continue to break new ground and deliver new solutions, we're focused on delivering the high-quality customer service that is our heritage.
AT&T's portfolio of services - perhaps the most robust in the marketplace - delivers choice, value and convenience across a range of options. Millions of consumers have chosen our comprehensive service bundles because of our competitive pricing and the convenience of a single bill for wired and wireless voice and data, broadband Internet, TV and messaging services.
The AT&T network includes extensive wireless and wired access capabilities, as well as one of the world's most advanced and powerful IP backbones.

The AT&T global backbone network carries 49 petabytes of data traffic on an average business day.

Our backbone network carries a full range of IP-based services, including wireless data, business video, data and voice services, private line and wavelength traffic, as well as IP-based residential services and Internet access for AT&T's more than 16.5 million total wireline broadband connections.

Our network also incorporates Multiprotocol Label Switching (MPLS), which supports a full range of applications over a single IP network infrastructure with the highest levels of service quality.

External Forces
Demographic

AT&T has built up its empire and survived competitively for over 100 years. AT&T is arguably in one of the best positions it has ever been due to its current external environment. America is growing and we are on the forefront of technology, this means faster data speeds and more bandwidth. Luckily AT&T is in the process of building out its Uverse network which is comprised entirely of fiber optics; fiber optics carries data at the speed of light. Americans are also becoming more mobile as are the devices we carry; AT&T has one of the largest Wi-Fi hotspot networks in America to support this growing trend. AT&T and the entire telecommunications industry has recent come under fire from consumers for clogged wireless networks, there is too many wireless users accessing data on their mobile devices at once, such as smart phones and laptops.
Customers have shown they want speed, mobility and value from their broadband service. That's why AT&T ranks number one among U.S. wired and wireless broadband providers.
AT&T serves 17.8 million broadband customers, including wireline (DSL, U-verse High Speed Internet and Satellite) and wireless mobile broadband LaptopConnect subscribers. By offering traditional wireline deployments as well as satellite-based and wireless broadband alternatives, we're able to provide our customers with a variety of options for broadband access. We continue to invest in our broadband networks, expanding availability and choice to new areas with our AT&T U-verse, wireless broadband and new DSL deployments.
Customers can choose from a wide selection of broadband plans at affordable price points to meet their needs. Services include downstream speeds of up to 24 Mbps for AT&T U-verse® High Speed Internet customers.
AT&T High Speed Internet plans include access to more than 29,000 AT&T Wi-Fi Hot Spots in the U.S. — turning your broadband connection at home into literally thousands of connections across the country.
AT&T has a unique set of assets and three networks working together to address this trend: wired residential broadband, Wi-Fi and wireless. AT&T allows you to extend your broadband connection at home into thousands of access points around the world with Wi-Fi hotspots and wireless coverage, including mobile broadband that covers nearly 80 percent of the population. That's mobility and value competitors can't offer.
Mobile broadband Internet access is a requirement for AT&T customers constantly on the move. In addition to Wi-Fi, AT&T's wireless broadband covers nearly 80 percent of the population. With LaptopConnect cards and Wi-Fi enabled devices, your workspace can travel with you around the U.S.
AT&T operates the nation’s largest Wi-Fi network** including more than 32,000 AT&T Wi-Fi Hot Spots at popular restaurants, hotels, bookstores and retailers, and provides access to more than 402,000 hotspots globally through roaming agreements.
Access to AT&T's U.S. Wi-Fi hotspots is included for millions of customers with AT&T High Speed Internet plans and qualifying smartphone and LaptopConnect plans.
The AT&T Wi-Fi network includes popular locations where customers have a need to log on, such as restaurants, coffee shops, bookstores, hotels and other locations. View an AT&T Wi-Fi coverage map to search for nearby hotspots.
Wi-Fi access is becoming increasingly important for consumers. AT&T has seen a surge in Wi-Fi connections, driven by more customers utilizing Wi-Fi on their smartphones and other connected devices and more businesses and venues offering Wi-Fi access for their customers.
Economic
Billions of dollars and thousands of jobs the total impact that AT&T has made on Connecticut’s economy between 2007 and 2011, according to a study by the Connecticut Economic Resource Center, Inc. (CERC).
The total impact from AT&T’s economic activity in Connecticut from 2007-2011 is estimated to be $26 billion in output including an impact of $16.1 billion in value added. The telecommunication company’s impacts from daily operations account annually for about 6,000 employees, $3 billion in sales, as well as average investments in goods and services of more than $245 million during the five-year period.
The study also found that 51 percent, or $627 million, of the $1.2 billion in AT&T capital investments made over the five years were spent within the state. These investments resulted in additional sales of goods and services and created an overall impact of $961 million.
In addition to the more than 6,000 people AT&T employed annually between 2007 and 2011, the company’s activities are estimated to have provided an additional 13,000 jobs across the state with the largest industry sector being Information.

Political/Legal
The Internet is a highly regulated market. New regulations or changes to regulation can positively and negatively impact AT&T. The efforts of the company in this area are extremely proactive and include lobbying staff.
AT&T Inc. complies with all applicable laws concerning political contributions. AT&T Inc. is subject to legislation and regulation that significantly impact its operations, including rates it can charge customers, its profitability and even how it must provide services to competitors. Political contributions, where permitted, are an important part of the political process.
AT&T's EA staff actively lobbies on issues that impact the company and our ability to do business. Political contributions are recommended by members of the EA staff, and, if approved, are made in accordance with this policy as permitted under law to help elect candidates whose views and positions are good for AT&T, our industry, and ultimately the free-market economy. Contributions may come from the employee-funded political action committees (PACs) that are sponsored by AT&T Inc. and its affiliates, or, when permitted by applicable law, from corporate funds.
All contributions are publicly disclosed as required by law. In particular, in all state and Federal jurisdictions, the recipient candidate campaigns and political committees are required to report the contributions they receive. In addition, the AT&T Federal PAC publicly discloses its contributions to the Federal Election Commission. Many states also require AT&T to publicly report corporate contributions made in those states.
Sociocultural
The explosion in communication and entertainment services is changing how people interact with devices and one another. Our world-renowned research in speech recognition, search and mining, natural language understanding, and human-computer interaction is relevant now more than ever since speech is the most natural and safest way for people to communicate with devices. Interfaces must also accommodate trends in social networking, as people share and comment on music, video and other media. Collaborative TV and radio, and applications allowing people to organize business, personal and social information, are part of how AT & T research is working to help customers and consumers interact with data and media as the younger generation of Internet users is moving toward faster cable modems.
As the mobile Internet changes the way businesses operate, AT&T is leading the way. We use our knowledge of customers’ businesses to deliver customized mobile applications that provide anytime, virtually anywhere access to content and services. And because AT&T provides a highly secure managed hosting environment, businesses get end-to-end solutions that easily integrate with existing applications, software and databases.
The definition of broadband services is changing. Wi-Fi and broadband was once about a high speed connection to the Internet at home. Now it's about a connection wherever you need it.
Customers need speed and mobility to stay connected to essential information, content and services. AT&T is an industry leader in providing broadband services that keep people connected at home and on the go.
Technological
The need to keep current on technology and integrate new technology where applicable is an advantage if emphasized and a weakness if ignored. Technology changes rapidly and AT&T maintains several industry recognized labs. The company is moving to retire older technology such as their microwave links. AT&T Labs Research is one of the world's premier research institutions, dedicated to advancing the science and technology of communications and information and to create innovative services founded on these advancements.
This company recognizes that growing demand for their products makes data center efficiency a major challenge. They continue to develop new and better approaches to more effectively manage our energy consumption while continuing to expand processing power, speed and storage capacity such as focusing on Server Virtualization, which will move new and existing physical servers to virtual machines, executing on Application Rationalization, which will allow us to streamline and retire IT applications, reduce costs and improve market responsiveness, enacting a Data Center Energy Program that improves efficiency through airflow improvement technologies and temperature improvement programs and implementing a data center optimization program.
Global
When traveling abroad, you can count on cost-effective calling, messaging, and data packages from AT&T World. AT&T International Service Plans offer affordable international service plans, with the broadest coverage of any U.S. wireless provider. AT&T currently offer wireless voice coverage in more than 225 countries and wireless data coverage in more than 210 countries. Of those, AT&T data plan subscribers can access mobile broadband services in more than 170 countries.
Physical Environment
AT&T Labs has always had its eye on the future. With this forward-looking focus, we're working to create a cleaner, more sustainable tomorrow. We're committed to applying our investments, research and innovation to pressing environmental issues. Reduce the electricity consumption of our company relative to data growth on our network by 60 percent by 2014.

PORTER’S 5 FORCES
The five forces model helps companies understand the relative attractiveness and competitive pressures of an industry. Every company especially one with leading competition in its industry, like AT&T, takes into consideration balancing the five forces: buyer power, supplier power, threat of substitutes, new entrants, and rivalry between existing competitors.
Bargaining power of buyers
The telecommunication industry has a high buyer’s power no matter what service provider you are. It is easy for anyone to cancel and switch services within minutes at rival retail services. How AT&T tried to combat the purchasing power for buyers was to join forces with Steve Jobs and Apple. Together they forged the service of the iphone. The iphone is only compatible for AT&T telecommunication services.
Buyer Power is high, especially in this technological area because there are many choices in products and services when it comes to communications. For AT&T’s wireless industry, there are many competitors such as Verizon, T-Mobile, Spring, Nextel, among others, that offer similar services. Therefore, in order for AT&T Wireless to attract and maintain customers they must offer top of the line wireless devices, networks, and affordable prices. The best way to reduce buyer power is by gaining competitive advantage, which AT&T thrives in doing. AT&T gains markets due to its philosophical approach to be the first to try new technologies. Customers perceive this confidence and quality in their products and services and choose AT&T.
Bargaining power of supplier
AT&T purchases a considerable amount of supplies and services each year. These supplies and services include switching equipment, network facilities, supporting equipment and others of the same degree. However AT&T generally purchases these utilities straight from the manufacturer or through their authorized distributors and value added resellers. Therefore suppliers that sell telecommunication components or support services for these products, usually sell to the manufacturers or the distributors, to AT&T itself. AT&T is contracted with individual manufacturers who assemble the finished products for AT&T. For over-the-counter items, AT&T buys from local companies, however, if they buy a high volume of a supply many smaller companies would bid and AT&T chooses the most cost efficient. The suppliers’ powers for AT&T are insufficient because AT&T is contracted to a select group of manufacturers, and the suppliers do not sell directly to AT&T, they are bought through these manufacturers who put the parts together for a finished product. AT&T is constantly seeking out ways to improve its performance and reduce costs leaving the suppliers power feeble. However, AT&T is committed to a goal of Supplier diversity by providing minority, women and disables veteran business enterprises the opportunity to compete for business opportunities by subcontracting through AT&T primary suppliers. They plan to procure 21.5% of their supplier business through the supplier diversity.
Supplier power is high when companies do not have many supplier choices to buy from. AT&T puts a great importance on their suppliers; therefore, they have their own organization, The Strategic Sourcing Organization, to handle the negotiation and purchase of products and services from suppliers. In this way, AT&T lowers supplier power and has many diverse supplier options that will provide quality products at an affordable price.
Threat of substitute products
AT&T really has no threat of substitution for communications. It is the number one provider of telecommunication services in the United States and one of the top competitors in the world. It would be very difficult to find a form of substitution for communicating around the world. However a threat could be many customers may switch over to cable companies such as Verizon because they not only provide telephone lines but cable as well in one payment package.
For Verizon, the threat of substitute products or services is not as high as other communication companies, because they are working to go beyond traditional technologies. Especially with their new LTE Innovation Center (Refer to IT Culture below), Verizon is taking the lead in creating new technologies. A way Verizon reduces substitute threats is in using switching costs--discouraging customers to go anywhere else--offering bundle packages, introducing new products and services, making contracts, and showing customers that their technology is teh best choice.
Threat of new entrance
There is a low level of service differentiation among the industry Competition might increase to the extent that new firms can enter the market if additional radio spectrum is made available for commercial wireless services. Entering the wireless telecommunication services market as a facilities-based provider requires significant capital outlay, in order to build infrastructure that covers most of the geographical area of the country of interest.
Economies of scale serve as a critical barrier to entry.
Governments influence significantly the height of certain barriers by setting rules and regulations.
The barriers of entry began early for AT&T. In the late 1940’s AT&T provided microwave relay systems across the nation within three decades. It proved to be a more effective form of communication rather than to copper wiring for long distance as its competitors used. In the 1960’s, AT&T launched its first satellite, Telstar 1, into orbit for international communications capability. These new technological advancements permitted new, more powerful, and eventually a less expensive cost for customer, form of communications. It was difficult for any telecommunications competitor to enter the market. Because of this, the FCC stepped in and deemed AT&T a monopoly and divest AT&T into smaller telecommunication services. Within the past year, AT&T also posessed the patents related to video compression, whish is essential to video technology. AT&T has advised other companies who posess the video technology that they may be infringing upon AT&T's patent. For these companies to use this technology, AT&T is offering a liscence under reasonable and non-discrinatory terms.
Verizon became the new entrant for other communication companies, when it targeted all areas in the telephone, landline, wireless, internet, broadband, and cable segments of communication. Due to Verizon's first-mover advantage, the threats of new entrants are higher, because companies will try to imitate or provide similar services in order to gain competitive advantage. Nonetheless, Verizon's most powerful entry barrier is its custom IT systems through their strong partnerships and technology, keep competition out.
Intensity of Rivalry Among Competitors
AT&Ts rivals have grown substantially since its days as a power house and monopoly. AT&T’s biggest rival is Verizon in which they battle mostly in the wireless phone front. Both are easily stealing customers from number 3 competitor, Sprint. AT&T also is beginning to diverse itself to compete with optimum online and Verizon. They are beginning to build extensive fiber optic networks, high-speed Internet connections, high definition television, and interactive features such as games and video conferencing beginning in 11 cities in 4 states.
Verizon has many competitors in all its areas of communication; however, in the wireless industry one stands out. Competition and rivalry are at an all time high between wireless providers. The most popular providers are Verizon, AT&T, Sprint, and T-Mobile. However, the strongest rival for Verizon is AT&T. Both companies spend millions of dollars battling in commercials against each other. Verizon has more customers and revenue than AT&T. Both companies are going for the same goals: to expand their networks, to work with 3G and 4G networks, to introduce new phone applications and devices. Regardless of their close competition, Verizon continues to be the top provider and competitor due to its outstanding prices, network, products and services.