International Impact on Telephone Company

International Internet Telephony has been evolving since its introduction in mid-1990s. With the Information Technology changing rapidly, different companies that work in telecommunications market are using various strategies to stay competitive. The main change has been noticed has been when more and more companies become IP carriers and multiple services providers whereas certain companies have refrained from any expansion into new infrastructure.

For a growing number of telecommuting workers, a cell phone, a PDA, and a high-speed laptop can be indispensable tools for earning an honest day's pay. Thus telecommunication companies have to stay competitive in today's tough market to survive. For example, AOL recently began to offer "AOL anywhere", service that allows users to check their email, instant messages, news headlines, stock portfolios, and other key features any time and anywhere. Or there is another service that is available only for AOL members - it is AOL TV that allows its users to do those essential to the users everyday things with their TV. AOL has always been known for providing "the most convenient and easiest-to-use interactive service available," and that is why AOL is one of the competitors for telephone companies such as Qwest or AT&T. (http://www.corp.aol.com/whoweare.html) AOL is also the only truly global interactive service provider, offering AOL services in 16 countries in 8 languages.

With the development of technology, customers' demand is increasing as well. And Thus telephone companies are doing everything they can "to be on top" of the market. For instance, in 1999, Qwest Communications International, Inc. had an investment into Rhythms NetConnections Inc. for performance-class digital subscriber line (DSL) connectivity to addition that Rhythms has agreed to provide space to Qwest in their local facilities for collocation of call processing equipment and to use Qwest as its preferred web hosting provider. Rhythms provides high-speed networking solutions for remote access to private networks and the Internet. (http://www.qwest.com/about/media/pressroom/1,1720,162_archive,00.html?printVersion=1&xmlFilename=1999Apr07162&storyId=162)

As Qwest's competitor, "AT&T's continued financial strength helped underwrite growth and improvement, from the multi-billion-dollar digitalization of its entire network, through a sustained move into the international market and nearly 200 countries, to major mergers and acquisitions." (http://www.att.com/history/history2.html)

For example, in 1998, AT&T had invested over $70 billion in the company's future and redefining its services and products. In 1999, AT&T extended its reach through the local service businesses, broadband cable companies and wireless providers that were acquired in the past several years. "More than 75 percent of its capital investment went into growth businesses, up from 60 percent in 1998. That includes an investment of more than $10 billion to upgrade and expand our data, Internet, broadband, local and wireless networks to meet new customer demand. In fact, AT&T doubled capital spending on its wireless network, which helped the company increase its wireless revenue by more than $2 billion in 1999." In 2000, through acquisitions and internal development AT&T created three of the most sophisticated end-to-end networks in the world for digital wireless, broadband cable and data. The company also made good progress in attracting customers to these new networks. Through its actions, three years later, AT&T boasts four businesses each a leader in its industry. (http://www.att.com/ar-2000/transition.html)

Qwest, to stay competitive, has its own business strategy. In 1998, the first step in creating Qwest was to build a most advanced network custom-made to the demands of the 21st century. The company's employees were positioning Qwest at the convergence of voice, data and image communications. Whether it was the most advanced applications in Internet access and imaging, Web hosting and e-commerce or getting e-mail, faxes and voice-mail through a single Internet gateway -- Qwest's goal was to make it all as easy as a phone call. It was blending technology with new capabilities driven by customer demand. (http://www.qwest.com/about/investor/financial/reports/1998/letter.html)

In 1999, Qwest has finished building a fiber network across the U.S. and it also has been expanded to Canada, Mexico, and Europe. In addition, Qwest was hosting sophisticated data and Internet applications