Rtsmith

http://www.ibisworld.com/industryus/default.aspx?indid=1267
http://www.ibisworld.com/industryus/default.aspx?indid=1268

For the past 5 years, the wired telecommunications industry has declined. Subscriptions to the services have decreased, causing the industry revenue to decrease as more and more people start to switch to VoIP's and Wireless phones to fulfill the needs of communication. Because of this change, Analyst reports such as the ones in IBUSWorld by Casey Thormahlen have recommended the investments on wireless telecommunications instead of wired.

In the past five years, the wireless industry has been booming as companies have made innovative technologies such as the ipad, and smartphones to sell to costumers. Wireless revenue has made an average of 5.6% increase from 2005-2010. Wired communications, on the other hand, has decreased annually with an average revenue of -7.5%. Profits are therefore more likely made if invested in the Wireless industry.

Year	Wireless Subscribers (Thousands)	Wireless: Revenue (%)	Wired: Access Lines (Thousands)	Wired Telecommunications: Annual Revenue change (%)
2001	129,990		189,200
2002	138,878	13.1	182,900
2003	157,042	10.6	177,700	-8.9
2004	181,105	10.7	175,200	-7.4
2005	203,669	4.7	167,500	-5.7
2006	229,619	9.3	158,400	-9.4
2007	249,235	7.6	149,300	-7.2
2008	265,550	4.2	138,200	-5.2
2009	280,200	0.6	130,300	-7
2010	289,727	1.6	123,400
2011

Securities Market

            Analyst recommend to buy, T (AT&T’s stock symbol),on a scale of 1-5, 1 being the strongest buy. The Analyst have recommended them at a 2.2 which is a strong buy. Since they have got the same recommendation two weeks in a row shows how this is a stable company, which the stocks are not losing value. 

Analyst Opinion

Recommendation Summary*

Mean Recommendation (this week):	2.2
Mean Recommendation (last week):	2.2
Change:	0.0

* (Strong Buy) 1.0 - 5.0 (Sell)

This chart below proves how AT&T’s stocks continue to increase in price. At closing time from March 31 to April 8, 2011 shows a steady growth of a few cents per day. This slow growth will one day be profitable when one chooses to sell the stock. This company also offers dividends to the stockholders as an incentive for people to purchase more stocks.

Prices

Date Open High Low Close Volume Adj Close* Apr 8, 2011 30.58 30.72 30.49 30.71 26,136,700 30.71 Apr 7, 2011 30.48 30.57 29.99 30.54 29,985,100 30.54 Apr 6, 2011 30.32 30.55 30.23 30.47 25,147,300 30.47 Apr 6, 2011 0.43 Dividend Apr 5, 2011 30.67 31.00 30.62 30.70 29,178,600 30.27 Apr 4, 2011 30.74 30.84 30.64 30.77 37,650,500 30.34 Apr 1, 2011 30.87 30.93 30.36 30.62 121,996,400 30.19 Mar 31, 2011 30.63 30.85 30.51 30.61 116,644,900 30.18

This next chart below proves why Analysts recommend T as a safe stock to purchase. When comparing the top telecom services AT&T has the largest market cap. Even though T’s stock is not as high as the other companies such as VZ, CTL, BCE, and CHT only AT&T and BCE has seen an increase in change. Whereas Verizon, CenturyLink, Frontier Communications Corporation saw a decrease in change. Chunghwa Telecom Company saw neither an decrease or increase.

Top Telecom Services - Domestic Companies by Market Cap

Company Symbol Price Change Market Cap P/E AT&T, Inc. T 30.71 0.56% 181.54B 9.18 Verizon Communications Inc. VZ 37.72 0.11% 106.67B 41.91 BCE, Inc. BCE 37.10 0.79% 27.92B 12.44 Chunghwa Telecom Co. Ltd. CHT 31.69 0.00% 24.58B 14.95 CenturyLink, Inc. CTL 40.46 0.34% 12.36B 12.94 Frontier Communications Corporation FTR 7.99 0.87% 7.94B 34.74

Overall these charts and analysts prove how AT&T is a safe stock to purchase. I wonder with the recent acquisition of T-Mobile if the stock prices will see an increase in price when the merger goes through. I also wonder if stockholders now will hold their stocks to wait to see a price increase or if people will sell to make a quick profit. I am curious how this might affect Verizon and if they will see a decline in stock.

 -Rachel

http://finance.yahoo.com/q/hp?s=T+Historical+Prices

http://finance.yahoo.com/q/in?s=T+Industry

http://finance.yahoo.com/q/ao?s=T+Analyst+Opinion

French Bring Solar Power To Mobile Phones

This WSJ article is about Wysips a thin transparent photovoltaic film that can charge your phone with solar power and has been start up by Ludovic Deblois, co-founder and president of the company.

It will cost about 1$ to integrate the new film into any mobile phone. The device will work in the sunlight and with artificial light, With the difference that in the sunlight it will generate power in about 1 hour, and in the artificial light it would take 5 to 10 minutes longer.

The product has attracted a lot of attention since there will be no more physical mobile phone chargers three or four years from now if this succeed.

Additionally, there are no limits to this new technology. It will be integrated into e-books, tablets and advertising panels and even on boats or cars.

I think this can be good for all kind of people and for telecom companies because this product will avoid people from running out of battery and the cell phone use will increase.

http://www.blogger.com/post-create.g?blogID=114175187414802634

Sapir

http://www.tgdaily.com/business-and-law-features/41239-apples-iphone-3g-saves-att-from-recession

AT&T did pretty well when in the recession. However, at the start of the recession, AT&T was losing revenue fast and was about to “drop the ball” because they were selling wired telecommunications products. Revenues were dropping at a dramatic rate as large amount of customers were switching from wired to wireless telecom, and it was Apple’s Iphone 3G that prevented the downfall of AT&T. by the end of 2008, AT&T lost a total of 6 million landlines. Broadband services also dipped to 236,000 from 396,000 a year before. For AT&T, “Wireless business made up for the landline decline.” By the fourth quarter of 2008 (period ending December 31, 2008), AT&T added about 2.1 million new wireless subscribers in the quarter which was down 2.7 million a year before. Slow growth was due to the matured market since everyone had at least one cell phone at the time with a service plan. 90% of new subscribers came to AT&T though, because of Apple’s Iphone 3G.
Wired and Wireless performance, combined with layoff expenses, subsidies, and the Iphone 3G, allowed AT&T to experience a slight 2.4% increase in quarterly revenue, but 23% drop in net income (remember the dying wired telecommunications industry).

Quaterly-2008
Revenue: was up 2.4% from 30.4 billion to 31.1 billion.

Annually-2007/8
Revenue climbed up 4.3% from last year to $124 billion.

Rtsmith

App Watch: Connecting People After Japan Quake

Kakao Talk is a South Korean mobile instant messaging application. This company was launched in March last year, and already has 9 million users worldwide. Including 1 million in Japan.

It currently supports 3 languages: Korean, English, Japanese. The messages are sent over third-generation such as 3G/(now 4G) and WiFi networks, that's why users don't need a messaging contract. This charge-free social networking service application had become very popular over the past year. Currently the free application can be downloaded by iPhone and Android phone users but they are developing an application for Blackberry smartphones. This application has being very useful specially when the earthquake and tsunami hit Japan. The telecommunication systems were devastated and a lot of people weren't able to communicate with them families/friends to check on them and see if they were alive. Many people used Kakao Talk and received answers back.

I think that this application will spread even more after it reaches blackberrys and smartphones. And the fact that the company is adding services as the one that allows users to send gift coupons to their friends, will draw in more users.

http://blogs.wsj.com/digits/2011/03/30/app-watch-connecting-people-after-japan-quake/?KEYWORDS=telecommunication

Sapir

Information Interview Blog7

Since I interviewed a Chinese company, I'd like to share some goals or aim that the Chinese telecom industry is seeking to achieve in the near future. Hope you all will enjoy it!

In my Information Interview, I interviewed one of the leading companies in the Chinese telecommunications industry. SI SEMICONDUCTORS CO., LTD. (SISEMI) is one of the largest High-Tech power semiconductors manufacturers founded in 1988 in Shenzhen, China. They own and operate 4" & 5" semiconductor wafers and devices production lines. The products of SISEMI fall in to four main categories: Bipolar Power Transistors, MOSFET, Schottky Diodes, Variable Capacitance Diode. These products contribute to the telecom industry because it provides the inner parts of the phone.

Mr. Hu Hai, is the CEO and one of the shareholders of the SISEMI company. He said in the next few years, the best investment opportunities in the industry is Chip designing, innovations in operating systems, Contour industrial design, improved customer service and the so-called Three Network Fusions (Telephone, Television, and Personal Computers). He also pointed out the main reasons for the emergence of these new investment opportunities:

1. China’s rapid economic growth is increasing people’s demand for new goods, services and technology.

2. The Chinese consumer’s consumptive psychology will lead to greater profits in the future for the telecom industry.

3. The changes in the lifecycle of small businesses and companies in China are also one of the investment opportunities.

The sign or the designing department is seen as one of the most prospective departments in the telecom business because attracting and capturing the customer’s tastes and preferences are crucial. The interior design of mobile phones also has a great influence in the sales in the telecom markets. Moreover, customer service is also an important part of the industry. Providing a better-quality service is one of the best ways to promote the sales of the product.

Mr. Hu’s responsibilities are brand promotion, maintaining channels with other companies in the market to practice different partnership experiences, and to monitor and operate the company. The skills or responsibilities he is looking for in potential candidates are enthusiasm for work, sense of duty, responsibility, diligence and self-confidence in taking leadership. For new employees, there are special training programs for them to participate and learn about the consumer trend in taste and preferences or consumptive psychology in order to fully understand the need for goods.

Miki

Blog- Accounting and Financing

            This chart exemplifies how the telecommunications industry has changed since 1984.  In 1982 AT&T had to break up its company since it had a monopoly over the telecommunications industry. In an anti-trust suit the deal was for them to end their monopoly.

            In 1984 there are six larger telecom companies that are offering services to the public. Over many years each company was purchased or merged or acquiesced by other companies, which lead to the leading five-telecommunication companies, with four main wireless companies. Ultimately there are 24 million AT&T users, Verizon: 26 million, T-Mobile: 34 million, Sprint: 50 million users. This proves how large the wireless industry is with a total of 134 million users in the United States. Worldwide this industry continues to grow as the world develops. The wireless telecom industry will continue to expand; however, the wire line telecom industry may face serious challenges in 2011. This is because more people are moving to use wireless cellular services. AT&T has 96 million users, Verizon 94 million users and Century link 15 million users. This totals to 205 million users in the United States, which is larger than the wireless industry. The wire line phone services decreased during the recession because people had to choose what is absolutely necessary if they were severely affected by the recession. In most cases a family would choose to pay their wireless cell phone bill over a home phone since a cell phone is believed to be more useful. I wonder since the economy is getting better if people will once again purchase wire line home phone services or will be content with just their cell phone. I also am curious if the wire line companies will continue to bundle deals with the usage of a faster Internet service as well as television services. With these bundled deals people will want to purchase their products because it seems as if they are getting a lot for their money.

            The wireless industry might see serious changes if a new merger goes through the government. AT&T wants to purchase T-Mobile for $39 billion dollars. If this deal goes through then AT&T will control 40% of the U.S. wireless market. I wonder if the government will approve this deal. I also am curious to what affects it will have on the economy. I am not sure if T-Mobile customers would stay with AT&T or if they would switch over to Verizon. I think if AT&T buys T-Mobile than the telecommunication industry with AT&T and Verizon competition will increase and Verizon will have to work harder to catch up with AT&T for customers. They will also be more competitive for deals right after the merger, because I believe Verizon is going to try to take customers from AT&T and T-Mobile. However, I know some phone plans might force people to stay with AT&T for a certain amount of time until their cellular phone plan expires.

-rachel

http://blogs.wsj.com/deals/2011/03/29/a-tangled-family-tree-how-att-became-att/?KEYWORDS=telecommunication+industry