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Case Analysis Strat Mgt

In: Business and Management

Submitted By Goldyone
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Case Analysis Paper
AT&T Vs. Skype

Author’s note

This analysis will identify the key issues revealed in the case study, “Skype vs. AT&T and the future of telecommunications” (Strickland et al 2011). The analysis will explore the current state of the telecommunications industry with the rapid emergence of the Voice-over Internet Protocol (VoIP) technology, wireless communications and the effects on traditional landline or what is known as Publicly Switched Telephone Network (PSTN). This effort will look into current problems and successes with increased focus on AT&T and Skype. Additionally, this paper will attempt to provide a perspective on the key issues with assumptions of what some of the causal factors may have been. Finally, what the companies’ leadership may consider for the future. Prior to examining the key issues of Skype and AT&T, what is Skype vs. AT&T? Skype was currently one of the industry leaders in VoIP and desired to challenge AT&T and other large phone companies. The telecommunication business is certainly going through a technological revolution with increased demands for faster speeds and services. Additionally the infrastructure is in demand to grow with the customer needs. AT&T along with several other landline based companies owned a major portion of the Internet infrastructure. Skype requires access to the Internet by way of Internet Service Providers (ISPs) in order for Skype to provide their VoIP service. AT&T with the other companies currently could not charge Skype beyond the normal rates for access to the Internet. With a looming battle with the large phone companies this presented some key issues with Skype. Skype was building a strategy for the future state, the keys issues Skype had to work toward solution were:
Key Issues * Declining revenue after the 685 % surge in 2006…...

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