Telebomb: The Truth Behind The $500-Billion Telecom Bust And by John Handley

By John Handley

Out of control deregulation of the telecommunications within the mid-1990's brought on many businesspeople-honest and dishonest-to suggest, fund, and perform ventures designed to alter the best way the telecommunications worked.Telebomb not just describes the chaos that ensued, but in addition follows all of the long term developments that emerged and that proceed to endganger the today.This thought-provoking ebook, written by means of an insider, attracts conclusions in regards to the final winners and losers in the course of and after the telebomb-and bargains useful recommendation to and executive on the way to stay away from one other, almost certainly extra devastating repeat.•Bigger, extra robust, and extra convoluted than ever, the telecommunications has now not performed approximately sufficient to correct itself because the telebomb•No different writer has nearly as good a view of the interior workings of such a lot of of the avid gamers during this large industry•Now that the telecommunications is now inextricably associated with media, net, and different provider prone, one other implosion will be that rather more disastrous for stockholders, staff, and shoppers

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They stayed on the straight and narrow path that was set out for them in the MFJ, providing little more than basic telephone service. The Baby Bells benefited from a national telecommunications policy that called for universal service. To support universal telephone service the industry was structured, through a complex series TEAM LinG Stability as the World Changed • 31 of cross charges and rate structures, so that virtually every citizen in the United States who wanted phone service could afford it.

As the former monopoly, it couldn’t add to 100 percent market share. It had nowhere to go but down, so it used its cash to pursue the dream of becoming a computer business. AT&T correctly determined as early as the 1960s that the ability to connect computers to a widespread communications network was the key to untold services that would revolutionize the world. Unfortunately, it was also holding on to the monopoly belief that it should be AT&T’s network to which everyone connected. Eventually, the Internet would prove its base hypothesis correct.

5 Although the number of broadband subscribers was growing quickly, it wouldn’t be quick enough to stanch the red ink at the dot-com companies. Many of the glitzy new services created by dot-com companies needed high-bandwidth connections to work properly. These dot-com products and services, once accepted by the public, would drive more subscribers to pay premium rates for broadband connections, thus helping the carriers pay the bills piling up from their investments in the late 1990s. Beyond the frauds and the mere silliness of many dot-com business plans, this chickenversus-egg scenario alone accounts for most of the Internet’s failure to reach its potential as quickly as was expected by many people in the late 1990s.

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