The Economics of Innovation in the Telecommunications Industry

By John R. McNamara | Go to book overview

CHAPTER 4
The Telecommunications Industry Since 1984

AT&T had successfully fought antitrust litigation for almost a century, arguing that, as a natural monopoly, it was properly treated as a fully regulated public utility and that it was therefore immune from prosecution under antitrust legislation. The Department of Justice had filed an antitrust complaint against AT&T in 1949, but the company was successfully defended by the FCC, which argued that it had effective control over all aspects of AT&T's pricing ( Henck and Strassburg 1988, 190-191).

By the early 1970s, the emergence of economically viable competitors, the prospect of rapid technological advances under competition and the growing evidence that much of the telecommunications industry did not have the characteristics of a natural monopoly, had all weakened AT&T's case.

The final series of events leading up to the divestiture of the Bell operating companies (BOCS) from AT&T began on November 20, 1974, with the filing of an antitrust suit by the Department of Justice, many private lawsuits alleging illegal business practices having already been filed against the company. The Justice Department charged that AT&T used its market dominance and control of local service "bottlenecks" to suppress competition and increase its monopoly power. Justice sought the divestiture of the BOCs and Western Electric from AT&T.

AT&T responded to the federal suit with its traditional argument that it was immune from antitrust suits because it was pervasively regulated at the state and federal levels, and requested that the suit be dismissed. The suit was not dismissed, and preparations for trial began. The Justice

-41-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Economics of Innovation in the Telecommunications Industry
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 198

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.