At&t in China Essay Example | Topics and Well Written Essays - 1750 words

At&t in china - Essay ExampleAT&T also needed to reconsider how its decentralized organizational grammatical construction could serve as a barrier in China where product pricing are heterogeneous up with other factors in sealing contracts. Another barrier to be faced with a long view was that telecoms sector in China would probably remain a heavy regulate attention for a long-time. Like media and utilities, the telecoms fabrication is a sector that Chinese authorities would not trust whole into the hands of foreigners because of its national security implications.It must be assumed that since AT&T already gestural a Memorandum of Agreement (MOA) in February 1993 with the Chinese authorities allowing AT&T to offer its encompassing array of services in the country albeit jointly with the Chinese government meant that at even with the regulated aspect of the telecom industry, the company had been given room to negotiate terms in their undertakings. And even when the join States threatened to tie Chinas human rights record to the renewal of its Most Favored Nation Status - AT&T, being the Americas biggest telecom firm was at an opportune time to use it to leverage its influence on the US government and use it to negotiate some favor able terms from the Chinese government.To be able to compete in China, AT&T needed to address three fronts so as to documentation up with the take exception - first, the heavy regulated aspect of the Chinese telecommunicat... whose focus on is to provide direct peal services as could be seen in its primary operations in the United States was a challenge in China where providing actual telephone services was closed off to foreign companies. It must so re-focus on manufacturing and systems and network infrastructure build-up for the state enterprise agencies responsible for purchase of telecom equipment at to the lowest degree for the short term while actual provision of telephone services were yet closed off. The purpose of whether to embark on a national manufacturing dodging must be deferred according to the set-up of the telecom industry in China, where economic decision making had been decentralized to the local government units.1 AT&T could focus building manufacturing plants on targeted locations based on which provinces or regions offer the best deals in terms of marketplace access, tax breaks, availability of manpower, availability of competitive facilities and utilities, etc. But first it must explore venues to essay joint ventures with local Chinese companies especially in the field of 5ESS switch manufacturing, VLSI manufacturing, network management expertise, R&D with Bell Labs, optical transmission manufacturing, wireless manufacturing, customer premises equipment manufacturing, training, systems integration, and network service offerings.2 The strategy of having local Chinese partners would greatly help a foreign company such as AT&T to smoothen relationships with Chinese telecom re gulators. Local partners would also offer valuable insights into the unique aspects of the Chinese market, with the special note that AT&T in 1993 had very few years of experience in terms of international or global strategizing. The importance of local partners takes an even more importance as the foreign