Many companies in the United States are struggling to survive. These companies are experiencing significant decreases in revenue, reduced assets, and increases in liabilities. Companies that already filed, or are at-risk for filing bankruptcy are struggling with keeping up with their competitors, causing the companies to lose their value. When a company files for bankruptcy, the company no longer gets to make the business decisions. The bankruptcy courts begin to make the decisions for the companies in efforts to restore the businesses. If the company is unable to revive itself from bankruptcy status, the company goes out of business. If this occurs, the company must sell everything it owns in order to compensate its shareholders and repay …show more content…
If they are able to maintain the loyalty of most of their current customers, the companies will then have a shared amount of about 100 million customers. This potential customer volume for the merging companies would greatly outnumber the customer volume of the industry leaders, AT&T and Verizon. This kind of turnout would create greater competition between the two merging companies and the two leading companies (Sprint Wireless News, 2014). Although the outcomes seem promising for Sprint and T-Mobile, there are also potential negative effects of a merger that the companies should take into consideration. Current Sprint and T-Mobile customers have expressed their fear of the possible merger for multiple reasons. The two biggest worries for telecommunication services consumers is the potential for rising costs and a reduction in provider options (John, 2016). In making a final decision, the companies, as well as the Federal Communications Commission, should weigh the advantages and disadvantages of a …show more content…
This means that the next 3-5 years for the company, currently known as Sprint, looks promising. The merger may not create perfect business conditions for the company, but financial improvements will appear evident and Sprint’s legacy is likely to survive. However, if the merger does not go through, Sprint Corporation is still at-risk for closing its doors within the next couple of years. If Sprint does not merge with T-Mobile, and the executive leaders fail to develop effective strategies to revive its current financial situation, I am predicting that Sprint Corporation will no longer exist in the near
In my opinion I think Verizon has better coverage because of its reliability index is 83.4 and its speed index is 75.7 witch is over AT&T, Sprint or T-Mobile and also a better network coverage. Here are some reasons why I think Verizon is better than Sprint.
The monopolistically competitive industry advertises to differentiate their product from their competitor. They want to communicate with their consumer to inform about the product and educate them. They also influence the consumer to convince about the product.
Chapter 7 bankruptcy: the bankruptcy in chapter seven is known as a liquidation process. This process is used when a corporation basically has no other alternatives in saving the corporation and has the ability to attain the essential creditor settlement. All of the corporation’s possessions have to be vended for their palpable value. There has been over a numerous amount of corporations who have declared bankruptcy on a yearly basis. Chapter 9 bankruptcy: this bankruptcy applies to all the cities in all areas. The biggest city to ever announce bankruptcy is Detroit, Michigan. However, there have been others such as: Stockton, California, and lastly, Birmingham, Alabama. Chapter 11 bankruptcy: this bankruptcy means that corporations are able
The main issue is the combinations of the two different cultures between AOL and Verizon. I have no doubt that the two companies can benefit each other financially, market share growth, and with development of new products/services. However, all that is dependent on how the cultures and ideologies mix. Like I had said earlier, AOL’s view of business is that they take care of their employees first and focus more internally. They believe that happy and healthy employees lead to happy customers and a healthy business. Verizon believes the exact opposite, and that we must focus on the customers and market first. They believe that the success will then lead to the employees feeling well about there jobs and the environment they are in, more outwardly
There could be also some potential pros out of merging Time Warner with AT&T. According to AT&T's CEO, the company is working on a new technology innovation. Such technological advancement could undoubtedly benefit customers in many ways. Nowadays consumers demand more and more premium content for their mobile devices. So far such it turned out to be very difficult to create mobile content. The deal with Time Warner could put one of the biggest content creators on the AT&T's side, which would definitely make contracts and right negotiations nightmares a lot easier for
AT&T will be able to establish itself as a telecommunications powerhouse if it is able to win its antitrust case against the Justice Department, yet the Justice Department and the Federal Communications Commission has the fate of the telecommunications establishment at the palm of their hands.
Bankruptcy is a process that allows consumers and businesses to eliminate or repay debts under the protection of the federal bankruptcy court. An individual might file for bankruptcy because he/she has lost his/her job and can no longer pay his/her financial obligations. A business may file for bankruptcy because it has borrowed money that cannot be repaid due to the business failure.
It was merely value-driven carrier with few offerings for the customer. Though the postpaid plans were cheap, but the network never matched the reliability of the competitors. Going through a failed AT&T merger, no LTE, no iPhone and losing the customers, T-Mobile had very less to offer. It was time for them to either fall or grab its pieces and create a recovery plan. CEO John Legere was the brain behind the revolutionary Un-carrier movement.
After the invention of phone calls, the Bell Telephone, and later AT&T, became an innovator of telecommunication industry in the United States. It began to spread throughout the towns, then to the country, then to the world. But since it owned all of the infrastructure, other companies couldn’t step into the industry of telecommunication. Therefore, United States Government decided to divide the company into regional telephone companies: Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesis, Southwestern Bell, and US West. Divesting of AT&T actually resulted in a spurred growth and innovation. Due to having competitors and challengers, our telecommunication industry has grown enormously, offering us more and more of new technologies.
I recall several years ago, when I was shopping for a new cell phone plan, to transfer my phone service and phone lines. A co-worker had mentioned several new things she loved about her plan with T-Mobile (2017). The word-of-mouth (WOM) reference I received was a good starting point, yet, did not fully sway me to contract with T-Mobile. Several promotions added to my final decision, however, the offer to have the biggest impact for my decision was a $25 discount on my plan every month just for being a government worker, which was very attractive, and stood out. Therefore, I purchase the plan and switch over, along with purchased two new phones on credit.
I expect that as mature, incumbent players, AT&T and Verizon are unlikely to make the price changes necessary to really stop T-Mobile’s momentum, and instead are likely to focus on maintaining cash flow. With Sprint now focused on cost cutting and maintaining liquidity, it is also no longer a real threat to T-Mobile’s operational and earnings momentum. The only real challenge that T-Mobile will face is to prove to customers that even though its network may not be as big as AT&T’s or Verizon’s, it is just as good. While quality seems better so far, the verdict is not yet in, and T-Mobile needs to augment coverage in some areas to catch up.
CEOs of Sprint and T-Mobile have had quite a confrontation on popular social media platform Twitter.
Prior to acquiring AT&T Wireless, Cingular made an offer to acquire T-Mobile USA. However, the offer was rejected by T-Mobile’s parent company, Deutsche Telekom (Van, 2004). In the same month, the struggling AT&T Wireless announced that it would auction its services to Vodafone of Britain and Cingular Wireless. In its initial state, AT&T Wireless was leaning toward a bid from Vodafone. However roughly about 30 minutes prior to the deadline, Cingular Wireless submitted one final bold bid of $41 billion dollar to AT&T
Sprint and T-Mobile are both owned both majority owned by large international telecommunications groups. Sprint is majority owned by SoftBank in Japan, and T-Mobile is majority owned by Deutsche Telekom of Germany (Gelles & De La Merced, 5 Jun 2014). The decision to end talks to merge Sprint and T-Mobile companies was a tough decision for Masayoshi Son. Son is a billionaire who controls SoftBank as president and chief executive officer, is an entrepreneur who reshaped Japan’s wireless industry, and has goals of reshaping wireless industry in the United States. Sprint and T-Mobile are the third and fourth largest wireless carriers in the United States. Using the vision by Mr. Son to combine the companies would greatly increase his ability to compete with AT&T and Verizon Wireless for customers. If Mr. Son was to make such a significant decision for his company to merge and purchase T-Moble and create a merger, he should consider the Vroom-Yetton model’s seven questions to help guide him with his decision making style.
The purposes of this report are to (1) address the problems Sprint and Nextel incurred before the merger, (2) discuss