Chapter 12 PPT Notes AT&T

Chapter 12 PPT Notes AT&T - The Communications...

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The Communications Infrastructure Chapter 12 And the Future Monopoly and Anti-Trust A market in which there are many buyers but only one seller In a monopoly, you can ask any price for your goods. .. In a monopoly, you control the flow of all information A monopoly -- a persistent market situation where there is only one provider of a product or service. . .. Alexander Graham Bell’s Legacy Brilliant businessman Began what would become America’s most influential company Telephone is the logical extension of the telegraph Telegraph/Telephone/Railroad Connection Industries needed each other … … AND government protection/support U.S. government gave them vast, sweeping powers Telephone needs even MORE protection/support A “natural monopoly”? U.S. government supported that contention with legislation that punished competitors Strange Bedfellows… Limitless possibility for profit for monopolies U.S. government supported AT&T’s monopoly at every stage With a monopoly, say goodbye to : Free market system, capitalism, incentives to improve or provide decent service to its customers Only available in immediately profitable markets 600 patent lawsuits vs. competitors Reputation for poor service Stockholders earned 50% return annually
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This note was uploaded on 04/26/2009 for the course FDM 1303 taught by Professor Korpi during the Spring '08 term at Baylor.

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Chapter 12 PPT Notes AT&T - The Communications...

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