Essay questions Flashcards
1
Q
1913 Antitrust action: Kingsbury Commitment:
Motivations:
A
- AT&T combats independents by
1. rate cutting
2. buying out competitors
3. refusing to interconnect
2
Q
1913 Antitrust action: Kingsbury Commitment: Outcomes
A
- AT&T will interconnect with independents, AT&T will stop buying independents, AT&T will divest Western Union stock
- victory for the independents because it prevented their being absorbed by the bell system and assured them of interconnection with the bell system
3
Q
1913 Antitrust action: Kingsbury Commitment: Impact on innovation or competition:
A
- independents became monopolies within their respective areas. This established the independents as an integral part of the communications industy and marked the the beginning of the two groups working together toward common goals
- Competition continued to decline
- Innovation was under AT&T control
4
Q
1956 consent decree “Final Judgement”
Motivation:
A
-wanted AT&T to stay out of other industries
5
Q
1956 consent decree “Final Judgement”
Outcomes:
A
- protected the computer industry
- AT&T gave UNIX away- inspired open sourse software
- accidently helped outside innovation
- shows the importance of openess to improving technology
6
Q
1956 consent decree “Final Judgement”
Impact on Innovation or competition:
A
accidently helped outside innovation
7
Q
1982
Motivation:
A
1974 new antitrust suit filed goal was to split off equipment and long distance
8
Q
1982 Outcomes:
A
- resolved in 1982
- breaks up AT&T
- AT&T splits into regional local telephone companies (RBOCs) and the long distance provider which keeps AT&T’s name
9
Q
1982 Impact on innovation or competition
A
- competition in long distance and equipment was promoted
- innovation was still an inside job
