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Universal Service : Competition, Interconnection and Monopoly in the Making of the American Telephone System

Universal Service : Competition, Interconnection and Monopoly in the Making of the American Telephone System

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Rating: 5 stars
Summary: Extraordinary
Review: In this crisply written mix of history and clear theory, Mueller retells the history of early competition in telephony -- and of the role of regulation in making the AT&T monopoly. The book brings to life a completely forgotten period, where telephones were like computer operating systems today -- competing yet incompatible. Not every phone could be called from every phone, and this fact, Mueller convincingly argues, pushed competition in telephone penetration.

The book also is convincing in its account of the reconstruction of the meaning of the word "universal service" which was brought about, Mueller argues, by AT&T revisionism in the 1970s. The original meaning was simply that any phone would be able to call any phone; the modern meaning (that some service subsidizes other service) was a construction of a late monopoly trying to defend itself.

The book suggests wonderful (if under developed) parallels with the story of competition in modern operating systems. And it offers some important skepticism about the 1996 Telecommunications Act.


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