Case Interview Questions #00024: Your client AT&T Inc. (NYSE: T) is a multinational telecommunications company headquartered in Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services. The company is the 20th largest mobile telecom operator in the world with over 96 million mobile customers.
Recently, the management of AT&T is interested in diversifying into other business areas besides telecommunications. They are considering entering the market for electronic home security systems (aka. perimeter security systems or intrusion detection systems, used in residential and commercial properties for protection against theft or property damage). Would you recommend that they do so? And why?
Additional Information: (to be given to you if asked)
1. Your client AT&T Inc. is a large holding company. They have previously made unsuccessful forays into software and into real estate.