TELECOMMUNICATION - TELECOMMUNICATION 10/9 -...

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TELECOMMUNICATION 10/9 - Telecommunications 10/11 - Film history 10/12- screening: - Mickey Mouse Monopoly KEY QUESTIONS How was the telegraph the fore-runner of the Internet revolution? What made for a natural monopoly in telecom under ATT? What changed? Why did so many telecom companies merge? How much competition in services do you really get? In local service? In mobile service? In broadband? What has changed in the way you use telecom? Impact of two-way interactive Telecommunication Revolution of telegraph in 1840s - “Lighting Lines” Enabled wire services, rapid reporting over distance Enabled geographic integration of U.S. Markets Necessary complement to railroads, other transportation Impact of two-way interactive Telecommunication Revolution of telephone, “talking telegraph” Helped people feel OK about moving away from city centers Natural monopoly? Bell monopoly initially via control over patents Lots of local start-ups when patent monopoly expired (after 17 years) Use of economic power by Bell Undercut local companies and forced them out Forced local companies into partnership to get connected to long distance Neither local nor long distance competition seemed to make economic sense ATT negotiated regulated monopoly Feared application of 1890 Sherman Anti-trust law
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This note was uploaded on 04/16/2008 for the course RTF 07885 taught by Professor Nasr during the Fall '07 term at University of Texas at Austin.

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TELECOMMUNICATION - TELECOMMUNICATION 10/9 -...

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