The Unethical Business in the Telecommunication Industry

Executive summary The report go away have a cheeseparing look on u terminalhical business about telecommunication industry. We culminationure that a lot of times the rights of consumers are not protected. Because of the much unethical behaviour in the industry, consumers often faced the choices between interest and kindly morality. In many cases this report has discovered that the unethical behaviours. The essay will also Analysis of each company and provides recommendations for investors. Introduction This report will look at The unethical behaviour about WorldCom news report shit The Monopolistic competition about china telecom The overcharging behaviour of AT&T Recommendations for telecommunication industry Conclusion Findings WorldCom WorldCom, The Americas second-biggest dour distance phone company. From 1999 to 2002, an internal audit had describe that $3. 3 one million million million in profits were improperly recorded on its books. That is on apex of the $3. 8 billion in expenses. And company said it had improperly reported as capital investments.WorldCom now says it must issue revised fiscal statements from full year ( quaternity quarters) of 2001 and the first quarter of 2002. (Tran, 9 August 2002) by and by the bankruptcy of company, investors and consumers feel staggered and scare. Because it was the large company, the public think it was been trusted by the public. But the company has abused the public trust through the misre bowation of financial statements preparation and to deceive the public and lie about the benefits of its products in coiffe to get more revenue. (Arnold, 22 July, 2002)mainland China Telecom By the end of 2010, the population of Internet users in china has been reach to 23. 3 present of whole world and about 55. 3 percent of Internet users in Asia. However, chinas rate of Internet is the slowest of the world, the clean rate of global wideband access is 5. 6Mbps, but in china, the average rate of downlink is only 1. 8Mbps (ranked 71st in the world). We noticed that the broadband commercialize in China is neglect of competition, Interesting, the average cost per Mbps is 3 to 4 times the price of UK, US and early(a) developed countries. Hille, November 14, 2011) The price supervision and anti-monopoly bureau at chinas National organic evolution and Reform Commission surprised observers on November 9, 2011 by announcing it was investigating China Telecom and another pharmaceutical company, the state-owned fixed-line carries, for allegedly abusing its dominant market vista to limit the competitor entry the broadband business. AT&T June, 2010. AT&T will stop to let the customers signing its unlimited selective information plans and use revolutionary tiered pricing system. Ettinger, June 2, 2010 ) AT&T listed trinity categories of plans Data Plus- $15 per month for 200 MB of data. If the customer is olympian 200 MB of monthly billing cycles, they mickle have special 200 MB of dat a for $15. According to AT&Ts Statistics, 65% of fluid phone users monthly data flow is slight than 200 MB Data Pro- customers spend $25 per month they sack up get 2 GB data. If customers outmatch 2 GB in this month, they can obtain 1 GB data/$10. Currently, 98% of people use less than 2 GB per month in their statistics. The AT&T customers can pay additional $20 per month to let their mobile phones as a modem to offer the broadband for their computes. When the company could not found the new-made profit growth point, they selected provide the products which harm the interests of consumers to balance the income and expenditure of enterprises, or else than through innovation to create new revenue. Recommendations Accounting scandal Considered the WorldCom case, affiliation of Chartered Certified Accountants (ACCA) Calls for global professional auditors maintain independent.They want to enamour the audit firm limit to provides additional services in order to make accounting fr aud, In accordance with industry standards to appoint auditors and pass on his independent position and not be limited by clients. passably competition Monopolistic competition Monopolistically hawkish markets have the following characteristics make headway Maximiser Maximizes profits. Price Maker They can decide the price of the product or unspoilts to be sold. Price Discrimination Usually refers to providers of goods or services to different recipients to provide the same level and same quality of goods or Services, diametric interview with the different price. Single seller In a Monopolistically competitive markets there are just one or two sellers of the good which produces all sidetracks. For this reason, the whole market has to serve by a one company, and this biggest company is the same as the whole industry. High Barriers to Entry The competitors are unable to entry this market of the monopoly.We can witness that the triangle purpose is the Deadweight loss. Ant itrust law or Antimonopoly Act Competition law, the more or less famous competition law is antitrust law, is law that stimulative market competes and adjust anti-competitive behavior. The role of the anti-monopoly law can be divided into four aspects Maintain a reasonable market structure improve the faculty of resource allocation. Maintenance and promotion of effective competition in the market, promoting the ontogeny of economic and technology. Protecting the legitimate rights and interests of consumers and social public welfare.Economic democracy Against overcharging In this case, we can witness that the company is trying to limit the consumers use more data by the data cap. But on the other hand, it seems to supporting consumers to use more data as they like. In this case, DataPro plan, the price of exceed guanine is cheaper than the previous. AT&T said that its maximum of 2 gigabyte of data in the plan will just impact the 2 percent users they collected, but the truth is th at the almost of data use is change magnitude every year. Todays heavy user is tomorrows average user.The extravagant charge of AT will hamper innovation in new ways, and hinder the salubrious growth of economic and broadband industry. AT can introduce an overcharging plan that is totally anti-consumers, further indicates that the wireless market is lack of competition Conclusion The report focuses on the unethical business in telecommunication industry and analysis of three cases about famous company, we sleep with that the WorldCom went bankrupt because the accounting scandal, china telecom loss the confidence of customers because noncompetitive conduct.It will lose the market competitiveness if it loses the support of government. I may suggest AT, the United States has a sound legal system and healthy business environment. With the Strict Sales Surveillance Mechanism, customers can make the stovepipe interest for themselves. Bibliography Binger, B & Hoffman, E. Microecono mics with Calculus, 2nd ed. p 391 Addison-Wesley 1998. Arnold, J. , 22 July, 2002. WorldComs star waterfall to earth. Online obtainable at http//news. bbc. co. uk/1/hi/business/2066885. stm? lang=en_us&output=json Ettinger, J. , June 2, 2010 . AT&T Tiered Pricing Is Anti-Consumer. Online Available at http//www. freepress. net/press-release/2010/6/2/free-press-att-tiered-pricing-anti-consumer Hille, K. , November 14, 2011. China expected to increase antitrust probes. Online Available at http//www. ft. com/cms/s/0/f21d704c-0c3a-11e1-8ac6-00144feabdc0. htmlaxzz1eqWYDERm Tran, M. , 9 August 2002. WorldCom accounting scandal. Online Available at http//www. guardian. co. uk/business/2002/aug/09/corporatefraud. worldcom2