There used to be a map – from Harvard, I think – that displayed the value of information transmitted on the horizontal access and the speed or throughput of transmissions. At this map’s bottom left were personal letters and at the top right were major financial transactions. Now, in this age of social networking, the bottom left of that map could be the home of many a Facebook and Twitter post, while Wall Street keeps increasing the $Trillions/MB transmitted.
The impact of divestiture in the mid 1980s was that carriers tried to get into the top right-hand corner with integration services and leasing companies. Eventually, though, it became clear that the carrier-financials relationship was not adding value, as the carriers could get often better prices elsewhere and the markups desired on integration were constantly under pressure...Read More
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