A Study of AT&T's Rise and Fall and How It Has Affected Customer Surveys in the Telephone Industry
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Presented below is a summary of the key findings of this research for the faculty of the Kalamazoo College Department of Economics: * Telecommunications technology of the first two decades of the Twentieth Century allowed AT&T to achieve a regulated monopoly position. * Four reasons for the divestiture of AT&T: 1. Falling economy of late 1960's 2. Poor service quality from late 1960's to early 1970's 3. Microwave telecommunications 4. Data transmissions market * Customer surveys became the basis of telephone company strategy after divestiture. * Long-distance telephone service became cheaper after divestiture. * Local service became more expensive after divestiture. * Big businesses benefited from divestiture more than small businesses or residential consumers. * Telephone equipment became cheaper and more diverse after divestiture. * Local telephone companies must diversify to subsidize local service. * The future success of local telephone companies depends on their ability to respond quickly to new customer demands.