External/Internal Factors: The Impact of

External/Internal Factors: The Impact of Technology on Cingular Wireless This year, a potentially seismic event occurred that could affect both the cost and accessibility of wireless and landline services. With the merger of the old Cingular and at&T Wireless, a new corporate giant was created. This technological behemoth now exerts market control and dominance over formerly competing cellular wireless services and landline communication as well. The merged company has the potential to curtail competition between new, more expensive services and older, less expensive services.

Technology is usually called an externally influential factor upon management. Technology affects the business from a sphere beyond that of the current organization. The development of wireless Internet and cellular service came from outside of both the company confines of Cingular and at&T, and even the best-managed company cannot always control the pace of technology. Technologically oriented businesses had to respond to this new development of wireless service.

But by merging, and sublimating competition between new and existing forms of technology, individual businesses like Cingular and at&T can exert control over external factors. Cingular wireless has made technology 'work for business,' rather than creating a potential market situation where businesses merely, passively respond to new technical developments and trends. In terms of exerting control, one of the four primary functions of management, (including control, planning, organization, and leading) this merger gives the combined forces of the company new market dominance.

Cingular, once owned by BellSouth and SBC, used to be the second largest national wireless carrier. When at&T Wireless, the third largest national wireless carrier, acquired the company, the two, fused together, created the largest national wireless carrier in the U.S.

The merged entity controls approximately 40% of national wireless customers, displacing Verizon Wireless as the largest national carrier with its near 30% market share." (Consumers Will Pay Big for Cingular/at&T Merger, Study Warns, 2004) In terms of planning, it seems inevitable that at&T Cingular's management will encourage the company to raise the price of wireless in the absence of competition from other companies and the fact that the at&T landline business no longer has to financially compete with Cingular wireless services.

Now, both services are under one entity for many consumers.

In terms of leading the market share, the greater the connection between the wireless and landline services, the better able the merged entity will be able to extend incentives to consumers to make use of the company for both technical services, such as the rollover options advertised on the company, expanded Mobile to Mobile calling, and access to the ALLOVER Network, said to be "the largest digital voice and data network in America." The website assures consumers, "you can continue to enjoy your existing benefits uninterrupted and without changes to your plan or its features." (Cingular Website, 2004) However, industry analysts believe that consumers will end up paying more for services, because of the absence of competition, in the long run.

In terms of overall organizational shaping of the merged corporate entity, this merger.