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> consumer-hostile monopolies cannot exist for any substantial amount of time without the backing of the State AT&T creates the first phone network. No one can

> consumer-hostile monopolies cannot exist for any substantial amount of time without the backing of the State AT&T creates the first phone network. No one can use their network because it's their property, and the phones installed in people's homes are also owned by AT&T, rented by consumers. How is competition going to appear? I suppose you could say the state is enforcing property laws, but even in the absence of functional governments people often prevent theft (there was a time before police, after all).

pitaj 8y ago
Ma Bell was a monopoly created by the federal government. It probably would have happened like this: - phone is invented - consumers want it - AT&T starts in one city, other companies start up in other cities - eventually people want to speak between cities - different phone companies start networking with each other to provide that service - AT&T has old infrastructure in the city where they started and consumers aren't happy, so one of AT&Ts competitors goes into that city and starts setting up a newer network that's higher quality and so on, and so forth
- nitwit005 8y ago
  It wasn't created by the federal government, and it did start locally in a single city. The city was New Haven, Connecticut. I believe other cities were initially franchises. Regardless, you see the exact same thing happen with railroads, with them holding monopolies on the rail lines they built (sometimes with incompatible rail).
  - ghostwriter 8y ago
    AT&T wasn't created by the government, yet there was a government intervention into the market, led by nationalisation. " Around 1917, the idea that everyone in the country should have phone service and that the government should promote that began being discussed in government. AT&T agreed, saying in a 1917 annual report: "A combination of like activities under proper control and regulation, the service to the public would be better, more progressive, efficient, and economical than competitive systems." In 1918 the federal government nationalized the entire telecommunications industry, with national security as the stated intent. Rates were regulated so that customers in large cities would pay higher rates to subsidize those in more remote areas. Vail was appointed to manage the telephone system with AT&T being paid a percentage of the telephone revenues. " https://en.wikipedia.org/wiki/History_of_AT%26T#Monopoly https://en.wikipedia.org/wiki/History_of_AT%26T#Monopoly

pitaj 8y ago

Ma Bell was a monopoly created by the federal government. It probably would have happened like this: - phone is invented - consumers want it - AT&T starts in one city, other companies start up in other cities - eventually people want to speak between cities - different phone companies start networking with each other to provide that service - AT&T has old infrastructure in the city where they started and consumers aren't happy, so one of AT&Ts competitors goes into that city and starts setting up a newer network that's higher quality and so on, and so forth

nitwit005 8y ago
It wasn't created by the federal government, and it did start locally in a single city. The city was New Haven, Connecticut. I believe other cities were initially franchises. Regardless, you see the exact same thing happen with railroads, with them holding monopolies on the rail lines they built (sometimes with incompatible rail).
- ghostwriter 8y ago
  AT&T wasn't created by the government, yet there was a government intervention into the market, led by nationalisation. " Around 1917, the idea that everyone in the country should have phone service and that the government should promote that began being discussed in government. AT&T agreed, saying in a 1917 annual report: "A combination of like activities under proper control and regulation, the service to the public would be better, more progressive, efficient, and economical than competitive systems." In 1918 the federal government nationalized the entire telecommunications industry, with national security as the stated intent. Rates were regulated so that customers in large cities would pay higher rates to subsidize those in more remote areas. Vail was appointed to manage the telephone system with AT&T being paid a percentage of the telephone revenues. " https://en.wikipedia.org/wiki/History_of_AT%26T#Monopoly https://en.wikipedia.org/wiki/History_of_AT%26T#Monopoly