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Read the attached word document and the reference page and in 200 words or less: Summarize the methods the team used to develop creative solutions to develop this paper. Here are the things we did:
Running head: PROBLEM IDENTIFICATION Problem Identification

 

Learning Team A

 

PHL/320

 

November 8, 2016

 

Robert Key 1 PROBLEM IDENTIFICATION 2

 

Problem Identification Based on the article ?FCC OKs AT&T DirecTV Deal several reports were set concerning

 

the internet interconnection pacts as follows; The FCC approved the license and authorization

 

transfers that were involved in the proposed merger of AT&T, Inc.and DirecTV, Inc. with some

 

conditions that covered extensive commitments by the merged company in order to submit its

 

internet connection agreement to the authorized commission for review. The FCC? s statutory

 

standards for reviewing these license transfers associated with the mergers and other transactions

 

is to determine whether they are in the public interest or not since justice reviews transactions

 

under an antitrust standard (Stanton, 2015).?

 

Summary

 

AT&T?s claims to be the greatest provider of phone and cable services in the world,

 

implying that a larger number of subscriber?s base and corresponding ability is mainly leveraging

 

efficiencies to deliver low-cost programming. However, several parties have expressed concerns

 

regarding potential harms to smaller cable operation in accessing programming or managing to

 

access the content at affordable costs (Stanton, 2015). In addition to this, the public supporters

 

and other cable TV operators reprimand the approval order concerning merging of the two

 

companies because the supporting conditions to overcome harm that could be created was not

 

sufficiently provided. ?Generally, Techfreedom is characterized by the agency?s merger review

 

as regulation by extortion sites, in addition to the conditions for review of other internal

 

interconnection agreement and for hiring the internal and external compliance officer. The article

 

clearly states that the FCC is trying to recreate the traditional rate regulation in all but its name at

 

the expense of imposing rate regulation on the internet (Stanton, 2015).? PROBLEM IDENTIFICATION 3

 

Problems Concerns The problem that has arisen and affected the cable universe is lessening. In addition to

 

that, satellite subscriber progress has stalled DirecTV lost 133,000 net subscribers in the second

 

quarter. Pay TV also lost its modern development engines due to the drastic shift in the television

 

world. With the newly accomplished, $48.5billion AT&T-DirecTV merger, the multichannel

 

video-programming distributor (MVPD) business claimed a new front-runner. With 26.4 million

 

video clients, the post-merger AT&T has the probability of bringing high-speed Internet, voice

 

and video services to underserved marketplaces across the United States.

 

Consolidation, competition, and new watching behaviors are altering the pay TV landscape, with

 

more reduction anticipated as superior contracts close and minor cable organizations are broken

 

up by larger peers. The merge is putting small companies in a tight situation where it's forced to

 

have a mandatory fused cable company eventually. (Farrell 2015).

 

Why this is an Underlying Problem

 

The selected works discuss the issue that is mergers in the telecommunication industry

 

which result in the problem of the decline of smaller companies. Farrell?s Eat or Be Eaten

 

presents the general merger and acquisition landscape in telecommunication and its impact on

 

firms over the years with firms that don?t merge declining and wholly disappearing. Santon?s

 

article specifically addresses one such merger, the AT&T-DirecTV merger. Such mergers are an

 

issue because they go against the public good and undercut smaller rivals in the market and in

 

the long run could result in a monopoly.

 

The underlying problem with this issue is the constant change in technology and in trends

 

in the telecommunications industry. Cable operators were dependent on their basic-video

 

subscriber rolls, but these stopped growing with the turn of the new century (Farrell, 2015). PROBLEM IDENTIFICATION 4 Companies with the required infrastructure were able to make a smooth move to the broadband

 

industry. AT&T had a monopoly on broadband infrastructure, and its acquisition of TCI

 

Communications placed it at the top, and constant mergers have enabled it to stay there. The

 

basic-video subscriber industry peaked in 2001 at 66.9 consumers and by 2014 had sunk to 54

 

million subscribers (Farrell, 2015). Companies like Comcast, which continued to focus on

 

mechanisms to grow their video subscriber subscribers, suffered losses that moved it from 3rd in

 

the industry in 1995 to sixth five years later (Farrell, 2015). The cable industry shifted again

 

towards satellite subscriptions putting DirecTV in the big leagues at position 3 in 2,000 (Farrell,

 

2015).

 

It is clear that companies that resist the constant changes in technology suffer losses. This

 

then leads to larger companies acquiring them to use certain elements of their service while

 

preventing their financial crisis. Different companies bring different strengths to the table as in

 

the case of AT&T broadband and TCI. Currently, companies still merge to combine their unique

 

strengths. Take the 2015 merger of AT&T and DirecTV for example; DirecTV lost 133,000 net

 

subscribers in a single quarter (Farrell, 2015). It was imperative that it changed some aspects of

 

its service. Creating its own broadband infrastructure would not be economically feasible

 

(Santon, 2015). AT&T would benefit from DirecTV?s satellite services and there a merger was

 

born.

 

Relate the Research to the Problem

 

The merging of DirecTV and AT&T has been of great benefit to the public and for

 

DirecTV as well. DirecTV has always been more affordable than cable, but it wasn't as appealing

 

as other cable companies as it didn't offer the bundles the public was interested in. This merge

 

gave AT&T the opportunity to lead the way and to redefine the video entertainment business for PROBLEM IDENTIFICATION 5 a mobile and high-speed world. This deal is good for competition and the public's interest. The

 

public has more affordable choices and access to broadband and telephone service.

 

After the justice department investigation, the Assistant Attorney General Bill Baer stated

 

the combination of AT&T and DirecTV does not pose a significant risk to competition (Stanton,

 

2015). This merge was a bigger benefit to DirecTV; consumers expect to get the content, and

 

programming they need as well as data on any device they want. If a provider doesn't satisfy

 

their customers in the future, they will be out of business. With the merging of the two

 

companies, it puts AT&T at number 1 in the top MVPD's list (Farrell, 2015).

 

?Problem Identification

 

Clearly defining problems in a business setting is imperative to explore the situation in

 

depth. The acquisition of DirecTV by AT&T in 2015 undeniably contained several challenges,

 

yet many times the problems provide their solutions. One of the concerns raised was that of

 

potential customers that live in MDUs (multi-dwelling units) would not be able to benefit from

 

the promotional pricing of combining Internet and television services because he or she would

 

not be permitted to install the dish satellite needed for DirecTV, (Stanton, 2015). Accurately

 

defining the problem makes it easier to find solutions to any business situation; it also saves the

 

company time, money, and resources. Another problem presented in this merger between AT&T

 

and DirecTV is the impact it would have on smaller cable providers. Without a doubt AT&T and

 

DirecTV are large entertainment providers and the merger would certainly affect all competitors.

 

However, some restrictions apply for certain customers, such as the price of bundle packages,

 

availability, and contract terms. Although the merger of these two huge companies did impact

 

other providers, it has not destroyed these companies, and it is evident that the fierce competition

 

still exists in the entertainment world. PROBLEM IDENTIFICATION 6

 

Conclusion As cited by (Farrell, 2015, p. 1), ?AT&T completed its $48.5 billion acquisition of

 

Direct TV, raising its video subscriber tally to 26.3 million customers and vaulting the telco to

 

the top of the list of multichannel video programming distributors.? AT&T has the capability of

 

bringing high-speed internet, voice and video services all across the United States. The constant

 

change in technology and trends in the telecommunications industry is always in demand. It is

 

clear that companies that resist the constant changes in technology suffer losses. By AT&T

 

acquiring Direct TV and their services, it prevented an economic deficit. This merge also lead

 

the way and redefined the video entertainment business for a mobile and high-speed world. AT

 

& T and Direct TV have proven they planned accordingly during this merger to avoid a serious

 

economic decline in their business. It is clear they have evaluated their plans for validity to

 

ensure the overall success of the company. References

 

Farrell, M. (2015, August). Eat or Be Eaten. Multichannel News, 8-10. PROBLEM IDENTIFICATION 7 Frieden, R. Rationales For and Against FCC Involvement in Resolving Internet Service Provider

 

Interconnection Disputes. SSRN Electronic Journal.

 

http://dx.doi.org/10.2139/ssrn.1838655

 

Stanton, L. (2015, August). FCC Oks AT&T-DirecTV Deal, Sets Condition to Report

 

Internet Interconnection Pact. Focus On, 81(15).

 


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