AT&T
Bell Telephone, and later AT&T, was the pioneer of the telecommunications industry in the United States. They ran the first copper cable, manufactured the first
telephone devices, and provided the first telephone service. With such a long history of success, it is no wonder that AT&T is still around today. Owning all of the
existing telecommunications infrastructure made it impossible for competitors to enter the market. It was not financially viable for anyone to try and establish a
parallel infrastructure (that is, bear the cost to bury thousands of miles of cable.) For this reason, the US government had to step in and AT&T eventually became a
regulated monopoly. The company was then divested into seperate regional telephone companies.
1. Read about AT&Ts history here: http://www.corp.att.com/history/history2.html and provide the names of the regional telephone companies that it was divided into.
Provide some examples as to whether or not the divesting of AT&T spurred growth and innovation.
2. Microsoft was another example of a “monopoly.” Research why the DOJ had to once again step in. Give your opinion on whether this was a necessary move. (Hint: some
of you may
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