When AT&T’s Divestiture occurred in the 1980s, people thought the battle of the future would between AT&T and IBM. The world was turning digital and computing was the future for us all. The viewpoint was that AT&T was going to use its “monopoly” on the local loop to control our future buying power for digital equipment. In addition, the assumption was that Sprint, MCI and others had been disadvantaged by AT&T’s control of the bundle of services that combined long distance. MCI did a brilliant job during Divestiture of hiring almost every good communications law firm, leaving AT&T to defend itself with mostly internal resources.
Now perhaps, we should look at divestiture as a huge success, even though the world did not match up to the model of the 1980s. In fact, it was almost totally the opposite and it continues to flow in a different direction.
Sprint sells off its local loop. Verizon sells off its local loop. Cable operators provide bundles and the concept of long distance is virtually wiped out. Even international dialing is nothing like it used to be.
So if the models associated with the need to divest is gone from a communications standpoint, what about computing?
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