IUB TEL-T 207 - kelsey t207 study guide (15 pages)

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kelsey t207 study guide



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kelsey t207 study guide

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Pages:
15
School:
Indiana University, Bloomington
Course:
Tel-T 207 - Intro to Telecom Indust & Mgmt

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10 08 2013 T207 w Ryland Fall 2013 Midterm Study Sheet V 2 Industry structure and business models Telegraph Early experimental period while on patent o Needed other things to be successful before telegraph could take of batteries had to be invented growing knowledge of electricity and things through wires o needs transmitter and receiver points needed inventors to wire country o Samuel Morse took 5 years to get the telegraph polished Patent in 1840 o No interconnectibility People weren t sure messages were being deliver properly Competition and decentralized networks when the patent lapsed o US postal service was its main competitor Wasn t bound by any issues like telegraph was Customers were Military Newspapers Banks o Patent was used to control rollout of technology When it was up companies came Pre and post Civil War consolidation especially by Western Union o Western Union North Did great business during Civil War Set up lines anywhere troops went Southern telegraph companies began to fail Western Union a natural monopoly o Entered into exclusivity agreements o Made a partner in the associated press o Early abuse of market powers Exclusivity of news o WU achieved monopoly in 1866 No antitrust regulation at this time The appearance of a new competitor telephone and how WU handled it o WU did not see it as a threat at first o Kronos efect Dominant industry player wants to keep dominance WU tried to buy up other technologies to incorporate Telephone Early business strategy while on patent o Patent achieved in 1876 by Bell company Elisha gray Europeans also discovered at time Competition and decentralized networks when the patent lapsed rural vs urban o Bell ofered to sell patent to WU for 100k WU had deployed 56k telephones by 1878 WU still had patents money power influence o Bell sues WU for infringement J Gould o Urban High prices urban focus of telephones 1 255 wanted dividends not reinvestment bell wired only the east coast where he saw most money and most



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