AT&T

Definition

AT&T is a major American telecommunications conglomerate that provides voice, video, data, and internet services. Originally known as the American Telephone and Telegraph Company, it has evolved over the years into one of the largest media and telecommunications companies globally, significantly impacting the landscape of global media conglomerates through acquisitions and service expansions.

5 Must Know Facts For Your Next Test

1. AT&T is one of the largest telecommunications providers in the United States, serving millions of customers with mobile and fixed-line services.
2. The company has undergone multiple mergers and acquisitions, including the notable purchase of Time Warner in 2018, which expanded its reach into content creation and distribution.
3. AT&T has been pivotal in the development and deployment of mobile technologies, including the rollout of 5G networks across the United States.
4. The company's legacy dates back to its founding in 1885 by Alexander Graham Bell, originally focusing on telephone services before diversifying into various media sectors.
5. AT&T's extensive infrastructure allows it to not only provide telecommunications services but also to engage in content delivery through its ownership of WarnerMedia.

Review Questions

• How has AT&T's evolution from a traditional telephone company to a global media conglomerate influenced the telecommunications industry?
  • AT&T's transformation from a traditional telephone company into a global media conglomerate has significantly reshaped the telecommunications industry by promoting convergence between telecommunications and media. This shift allows AT&T to bundle services such as phone plans with streaming content, which enhances customer engagement. Furthermore, its strategic acquisitions have increased competition within the industry while also raising concerns about market monopolization and consumer choice.
• Discuss the implications of AT&T's acquisition of Time Warner on both its business model and the broader media landscape.
  • The acquisition of Time Warner by AT&T marked a significant shift in its business model by expanding its portfolio from solely telecommunications to include content creation and distribution. This merger allowed AT&T to offer integrated services that combined traditional telecommunications with premium content from networks like HBO. The broader media landscape has been affected as well, leading to increased competition among media conglomerates and raising questions about how combined entities can influence consumer access to diverse content.
• Evaluate how AT&T's role as a major telecommunications provider impacts regulatory discussions surrounding deregulation in the media sector.
  • As a major player in the telecommunications market, AT&T's actions influence regulatory discussions regarding deregulation in the media sector. The company's extensive reach and market power raise concerns about potential monopolistic practices that could stifle competition and innovation. Policymakers must consider AT&T's influence when debating deregulation, weighing the benefits of reduced government oversight against the risks of decreased consumer protections and diminished diversity in media ownership.

Related terms

Telecommunications: The transmission of information over significant distances through electronic means, encompassing various forms of communication including voice, data, and video.

Media Conglomerate: A company that owns a number of other companies in various media sectors, such as television, film, radio, and publishing, allowing for cross-promotion and shared resources.

Deregulation: The process of reducing or eliminating government rules controlling how businesses operate, which has led to significant changes in the telecommunications industry and allowed companies like AT&T to grow through mergers and acquisitions.